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THE OFFICIAL MAGAZINE OF TECHNICAL ANALYSIS

TRADERSWORLD
www.tradersworld.com | Nov/Dec/Jan 2016 Issue #61

Ganns Proof & Cause of


Market Movements The Square
of Odd and Even Numbers
Into the Minds of the
Masters Part II

The Grain Market


Situation Where are
we Now?

How to Develop the


Discipline to Stop
Impulse Trading

Market Timing - The Difference Between Success and


Failure

Ratio & Proportion Applied to the Elliott Wave Principle

Hindu Tea Merchants Calculator or W.D. Gann's


Square of Nine
www.tradersworld.com Nov/Dec/Jan 2016 1
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Editor-in-Chief
Larry Jacobs - Winner of the World Cup Trading Cham-
pionship for stocks in 2001. BS, MS in Business and
author of 6 trading books.
Nov/Dec/Jan 2016 2015 Issue #61
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Contents
Target Filled
by Al McWhirr 94

Nov/Dec/Jan 2016 2015 Issue #61


A Major Price and Sentiment Cycle Alignment
Ganns Proof & Cause of Market Movements in Gold and Silver
The Square of Odd and Even Numbers by Lars von Thiene 101
by Daniel T. Ferrera 10
Putting the Cycles Back into the Market
Into the Minds of the Masters Part II by Chris by David Hurst 105
Verneulen 16
We dont see the things as ther are, we see
The Grain Market Situation Where are we Now? things as we are - Anas Nin
by Daniele Prandelli 23 by Craig Haugaard 110

The CIT Toolbox The Idea Moving Averages for Swing Trading
by George Krum 30 by Clif Droke 113

How to Develop the Discipline to Stop Impulse My Store and the Truth About Time Part 1 A
Trading True Story
by Rande Howell 35 by David Franklin 117

Joe & Maintaining Trading Success Review of the Path of Least Resistance by
by Adrienne Toghraie 39 Daniel T. Ferrera
by Larry Jacobs 127
Market Timing - The Difference Between
Success and Failure Review - Building Winning ALgorithmic Trading
by Andrew Pancholi 42 Systmes by Kevin J. Davey 128

Ratio & Proportion Applied to the Elliott Wave Why Traders Should Never Deal with Data Lag
Principle Again by EddieZ 129
by Peter Goodburn 49
How To Buy A Trading Computer
Traders Dilemma and Resolution Free Guide 131
by Stan Ehrlich and Sumonto Ghosh 54
Amazon Kindle Books 132
Easy Rythm
by Stan Moore 60

Hindu Tea Merchants Calculator or W.D. Ganns


Square of Nine
by D.K. Burton 70

Key Ingredients for Your Trading Success


by Thomas Barmann 82

www.tradersworld.com Nov/Dec/Jan 2016 6


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THE MOST ADVANCED WORK ON FINANCIAL ASTROLOGY!

SECRETS OF THE CHRONOCRATORS


BY DR. ALEXANDER GOULDEN
A DISTILLATION OF THE ASTROLOGICAL SYSTEMS OF THE
ANCIENTS APPLIED TO MAREKT FORECASTING & TRADING
PROJECT KEY TURNING POINTS & TREND LENGTHS!
FOR A DETAILED WRITE-UP ON GOULDENS COURSE INCLUDING FAQ & CUSTOMER FEEDBACK SEE:
WWW.SACREDSCIENCE.COM/GOULDEN/SECRETSOFTHECHRONOCRATORS.HTM

STATEMENT OF INTENT ESSENTIAL TOPICS COVERED IN THIS COURSE


- THE INTENT OF THIS COURSE IS TO DEMONSTRATE THE The Septenary division of significators.
ASTROLOGICAL PRINCIPLES WHICH UNDERPIN THE The relationship between the lunar cycle, the
MOVEMENT OF FINANCIAL MARKETS. moment of birth and the timing of major events.
- IT OFFERS A CONTEMPORARY PRESENTATION OF THE The pre-natal Syzygy chart and how to use it.
SUPERIOR ASTROLOGICAL TECHNIQUES DERIVED BY THE The nature of the biquintile aspect.
MASTERS OF ANTIQUITY. The significance of the rotary interaction between
- A CORE COMPONENT OF THIS ADVANCED SYSTEM IS THE the Moon, the North Node and the lunar
SCIENCE OF CHRONOCRATORS (TIME LORDS), WITHOUT counterparts by progression and direction.
WHICH FORECASTING BECOMES INEFFECTIVE. Metaphysics of Part of Fortune & Arabic Parts.
- THOSE WITH A SERIOUS INTEREST IN HEAVYWEIGHT An Arabic Part of great power and utility which is
ASTROLOGY & MARKET SCIENCE WILL GAIN IMPORTANT little known and little used today.
INSIGHTS AVAILABLE FROM NO OTHER SOURCE!
Secrets concerning the rotary coordinates of price.
- THE COURSE INCLUDES UNIQUE REVISIONS OF AN ANCIENT Ancient Chronocrator (Time Lords) systems,
METHOD BY WHICH TO RECTIFY A NATIVITY.
revealing the inner and outer holograms of trend.
- IT EXPLAINS THE ASTROLOGICAL FACTORS WHICH
Chronocrators & astrological dynamics of trend.
REGULATE THE TIMING OF PIVOTS & DIRECTION OF TREND.
- IT ALSO REVEALS CERTAIN ASTROLOGICAL SECRETS WHICH The convergence of Chronocrators as a signal for
DETERMINE PRICE.
culmination of trend. Forecasting trend lengths!
- MOST IMPORTANTLY IT EXPLAINS HOW TO ISOLATE THE Time keys and simplified directions.
ASTROLOGICAL SIGNALS WHICH ARE "LIVE" AT ANY GIVEN The Science of Rectification - based on ancient
POINT, AND WHICH WILL HAVE AN EFFECT UPON A MARKET. techniques, including a rectification of S&P500!

FOR A DETAILED WRITEUP ON GOULDENS COURSE INCLUDING CONTENTS, SAMPLE TEXT & FEEDBACK SEE:
WWW.SACREDSCIENCE.COM/GOULDEN/BEHINDTHEVEIL.HTM

TECHNICAL ANALYSIS REVISED! Dr. Gouldens advanced technical trading course Behind The Veil
presents powerful trading techniques based upon the deepest
BEHIND THE VEIL scientific and metaphysical principles applied in a different way
than courses in the past. It unveils many mysterious and difficult
AN APPLIED TRADING COURSE USING theories and applications similar in approach to those of W.D.
ADVANCED PRICE/TIME TECHNIQUES TO Gann and shows a tr ader how to use these pr inciples to
successfully analyze and trade the any market on any time frame.
PROJECT FUTURE TURNING POINTS...
The techniques developed by Dr. Goulden will teach traders how to
BY DR. ALEXANDER GOULDEN identify future pivot points following which profitable market
FORECASTING RECORDS moves ensue. All of the timing tools needed to forecast these pivot
points and the geometric tools used to identify price entry and exit
DR. GOULDEN PRODUCED 7 FORECASTS points, and to determine the nature of the ensuing trend are
IN 7 DIFFERENT MARKETS. HIS RESULTS demonstrated in the Course. Based upon a deep level of
WERE IMPRESSIVE, 7 OUT OF 7, metaphysical and cosmological insight, these techniques identify
PRICE LEVELS, TIME TURNING POINTS, AND TRENDS,
YIELDING 3,161 POINTS IN 7 DAYS, WITH though proprietary HARMONIC, ASTRONOMICAL &
7 TRADES, IN 7 DIFFERENT MARKETS! GEOMETRICAL techniques developed by a Cambridge scholar.

SACRED SCIENCE INSTITUTE WWW.SACREDSCIENCE.COM


EMAIL: INSTITUTE@SACREDSCIENCE.COM US TOLL FREE: 800-756-6141
INTERNATIONAL 951-659-8181 SEE OUR WEBSITE FOR OUR FULL CATALOG OF COURSES!

www.tradersworld.com Nov/Dec/Jan 2016 9


Ganns Proof & Cause of
Market Movements
The Square of Odd & Even Numbers
By Daniel T. Ferrera

W.D. Gann, in his course titled The Basis equal number of time periods, either
of My Forecasting Method said: We use the days, weeks or months.
square of odd and even numbers to get For example, if a stock or commodity made
not only the proof of market movements, a price low of $26, then one would watch for
but the cause. The natural number squares a change in trend at 26-days, 26-weeks or
are 1, 4, 9, 16, 25, 36, 49, 64, 81, 100, 121, 26-months from the date that this price low
144, 169, 196, 225 and so on to infinity. For originated from. If it made and extreme high
many years, this particular timing technique level at $155, then a change in trend would
eluded any real practical application. be monitored at 155-days, 155-weeks and
There were of course times when simple months from the origin. The range would be
counts of these numbers in either calendar the difference between these two extremes or
or trading days produced a market turning 129-days, weeks or months.
point at a natural squaring of a whole number Michael Jenkins book, The Geometry of
in days, weeks or months, but nothing Stock Market Profits has many stock examples
consistent ever presented itself, thus leaving of this traditionally understood one to one
Ganns profound clue about as valuable as relationship of price expressed as time, but it
doing Fibonacci counts or similar bar counting is difficult to get it to work on other stocks or
methods. markets selected at random.
This quote along with many like It wasnt until, digging through piles of old
statements, such as: When price and time materials and private letters written by Gann,
square change is inevitable. would work I came across one particular private letter
sporadically, with the traditional interpretation that triggered in me the impetus to re-read
of Ganns instructions for squaring some all of Ganns courses in order to uncover the
extreme price high or low as well as the meaning of the ideas that he was claiming
spread or point range between two extremes, in these quotes, of which he never provided
but nothing concrete. any tangible examples. I had also never seen
Gann claimed that squaring a price extreme other author or Gann expert explain these
or a price range was one of the most points, so I became determined to get to the
important and valuable discoveries that bottom of it.
he ever made. In most of his available courses, Gann was being honest in expressing his
Gann teaches this technique as follows: The perspective, but just not willing to hand it over
Squaring of Price with Time means an to students on a silver platter. Also, Gann had
equal number of points balancing an the tendency to scatter pertinent information

www.tradersworld.com Nov/Dec/Jan 2016 10


necessary for a clearer understanding of a particular subject in seemingly unrelated topic
headings, making it quite laborious to weave together the full elaboration of each of his
techniques, if they were explained at all.
In any event, taking Gann at his word and going back through nearly all of his course
materials revealed that Gann was indeed truthful when he titled his course, The Basis of
My Forecasting Method. This course is primarily concerned with Ganns geometric angles,
which when drawn correctly and linked to the basis of money, do indeed prove to be intimately
tied to his price squaring technique as well as his strange quote regarding the square of even
and odd numbers being both the proof and cause of market movements.
The later requires some understanding of the Square of Nine, a.k.a., The Natural Squares
Calculator but ultimately, all of these techniques are part of a common methodology which
relates back to the geometric angles as the foundation, specifically, the 45-degree angle.
Gann encoded much of his methodology in the Natural Squares Calculator. This Master
Chart can also be used to generate support and resistance levels, which was detailed in
other courses and articles. The levels generated are based on the concept of natural number
squares representing a 360 cycle as the chart squares the circle spiraling out from its central
number 1.
Again, the natural number squares are 1, 4, 9, 16, 25, 36, 49, 64, 81, 100, 121, 144,
169, 196, 225 and so on to infinity. On this Master Chart, the square of even numbers (4, 16,
36, 64....) run opposite to the odd number squares (1, 9, 25, 49, 81....) on a 45 diagonal,
representing the diagonal of the square and hypotenuse of a triangle. Therefore, in reality,
there are actually two squares on this so-called Master Chart. The square of the even numbers
and the square of odd numbers. This can be color separated as follows.

Once a number becomes greater than the square of a natural number, it moves into the
next square. For example, the square of 1 is 1, and all numbers greater than 1 are in the
square of 2. The square of 2 = 4, so all numbers greater than 1 and less than or equal to 4 are
in this square. The first number to exceed 4 moves into the square of 3, which = 9.
The diagonal arrangement of these two natural squares, both even and odd not only

www.tradersworld.com Nov/Dec/Jan 2016 11


symbolically links back to Ganns primary 1 x 1 or 45-degree angle, but also does so in actual
application, which reveals what Gann called The Inner Square. Ultimately, this is a sub-cycle
of the larger technique used to Square Price as a balanced time period.

There is a definite relation between TIME and PRICE.--W.D. Gann

The Square of 8 or 64, occurs on October 13th, 2015 and would be anticipated as a future
turning point in this market (S&P500 Index). Each grid or block, if preferred, represents a
corresponding block on the Natural Squares Calculator more commonly known as the Square
of Nine.

www.tradersworld.com Nov/Dec/Jan 2016 12


Understand that each and every one of the charts turning points was entirely based on a
single price point in history, that being the price low of 666.79 on March 6th, 2009. There is
no astrology, numerology or other occult Gann wisdom used in this example. Its just math
and geometry based upon the geometric angles being The Basis of My Forecasting Method.
Once understood, the other techniques of squaring-out highs, lows and ranges as time
periods as well as finding the inner square (natural squares), all become integrated techniques
based on simple math. This understanding opens up a sequence of valuable tools that give
added power and integration to Ganns most interesting geometrical techniques.
My new course, The Path of Least Resistance, The Underlying Wisdom & Philosophy
of W. D. Gann Elegantly Encoded in the Master Charts, (http://www.sacredscience.
com/ferrera/The_Path_of_Least_Resistance.htm) reexamines the full spectrum of Ganns
mathematical and geometrical techniques, developing these principles and other similar tools
in great detail, and breathing some new life into elements of Ganns theories that I am not
aware of any ever clearly explaining before.

Daniel T. Ferrera
institute@sacredscience.com
www.sacredscience.com/Ferrera
800-756-6141 or 951-659-8181

www.tradersworld.com Nov/Dec/Jan 2016 13


THE TEXTBOOK OF GANN ANALYSIS...
The Path of Least Resistance
THE UNDERLYING WISDOM & PHILOSOPHY OF W. D.
GANN ELEGANTLY ENCODED IN THE MASTER CHARTS
BY DANIEL T. FERRERA
MOST DETAILED COURSE ON GANNS MATHMATICAL & GEOMETRICAL TOOLS!
WE USE THE SQUARE OF ODD AND EVEN NUMBERS TO
" INTENT OF THIS GANN COURSE
GET NOT ONLY THE PROOF OF MARKET MOVEMENTS,
The intent of Ferreras new course is to provide the most
BUT THE CAUSE." - - - W.D. GANN comprehensive elaboration of W.D. Gann's most powerful technical
trading tools. It presents, with great precision, all of Ganns
foundational mathematical and geometrical techniques expressed in his
How to square the natural whole numbers (odd and master calculators, angles, trend channels, squaring processes, pattern
even), along with their midpoints. formations, spiral charts and much more, leading to the clear
How to define prices scales by "The Basis of Money identification of profitable Trade Setups, important trend indications,
and critical price/time culminations.
How to set the proper scale, and use the 1x1 angle to The material further elaborates for the first time ever, a
square or balance price with time. number of Ganns most advanced geometrical tools and applications,
such as the natural squares (even & odd) sub-cycle and the square root
How the natural squares (even & odd) sub-cycle
as an "inner square" time period, which were well hidden within Ganns
would not be possible without understanding the different courses, but never explained, showing how to properly unify
Spiral chart (Square of 9).... expressing the square disparate tools into an integrated methodology according to Ganns very
root as an "inner square" time period. specific rules.
There has never been a Gann course that so clearly
How to assimilate all of these elements together as a developed every detail of this element of his trading technology so as to
sequential methodology once the "basis of Gann's be both easily comprehensible to newer Gann students and highly
forecasting method" has been worked out. informative to the most seasoned Gann analysts, providing new insights
that most will have never seen. It provides both practical and actionable
How Ganns price squaring techniques and master trading signals and a valuable structural perspective to any market on
charts are NOT completely separate and independent any time frame.
methods, but are tied together thru geometric angles. With 300 pages of detailed text, over 150 charts and
diagrams, and 190 pages of the rarest Ganns supplementary material,
How the inner square root sub cycle & natural we consider this 500 page treatise to be THE TEXTBOOK on Ganns
squares of numbers reveals unique market turns. geometrical techniques that no serious Gann analyst can be without!

FOR A DETAILED WRITEUP ON THIS COURSE INCLUDING FULL CONTENTS, AND SAMPLE SECTIONS SEE:
WWW.SACREDSCIENCE.COM/FERRERA/THE_PATH_OF_LEAST_RESISTANCE.HTM

FERRERA CALLED EVERY REVERSAL IN 2014!


FERRERA OUTLOOK FOR 2015
The Decennial Paradox &
Time For Sudden Change
HE ALSO CALLED THE 2007 TOP IN ADVANCE
HE PREDICTED THE 2009 BOTTOM AND HAD
ALL HIS CLIENTES BACK IN THE MARKET AT
THE LOWEST LOWS FOR THE BULL MARKET!
CALLS THE YEARLY INTERMEDIATE SWINGS
8 YEARS HISTORY OF HIS OUTLOOKS
HES WRITTEN OVER 10 BOOKS ON ANALYSIS
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10 www.tradersworld.com Jan/Feb/Mar 2013 www.tradersworld.com Nov/Dec/Jan 2016 15
Into The Minds Of The Masters Part II
By Chris Vermeulen

W.D. Gann (William Delbert) : 1878 ~ 1955 : Often credited with being a true visionary
in terms of understanding the 20th century markets and the natural orders of time/price
relationships. Although much of Ganns work remains somewhat mysterious and shaded from
the public, recent works have exposed much more detail to the relationships and theories
applied by W.D. Gann. Gann himself stated the financial markets are driven by the Law
of Vibration. Gann also stated the Rate of Vibration of individual stocks and commodities
determined the up and down of their prices.

Within this article, we will be exploring how the core components of the Law of Vibration as
well as the Rate of Vibration, as identified and applied by W.D. Gann, correlates and applies to
the multifaceted techniques we are exploring.

Much of Ganns work includes the work of Leonardo Fibonacci and expounds on new factors such
as Vibration and Harmony. These concepts in price action as applied to the financial markets
were well beyond their time for the early 1900s when Gann shared this information in a now
famous The Ticker and Investment Digest, 1909 (interviewed by Richard D. Wyckoff). Within
this article, Gann attempts to disclose as much as he dared to without giving away the secrets of
his hard work and study. Here are a few excerpt from this groundbreaking article.

In going over the history of markets and the great mass of related statistics, it soon becomes
apparent that certain laws govern the changes and variations in the value of stocks, and that
there exists a periodic or cyclic law which is at the back of all these movements. Observation has
shown that there are regular periods of intense activity on the Exchange followed by periods of
inactivity.
My interpretation of this statement is that W.D. Gann was attempting to share the knowledge
that while attempting to prove or disprove his theories regarding the Law of Vibration, he
identified multiple different phases within the Law of Vibration as well as a correlation to the
Natural Laws that exist in all things. Very much like Physics theories and concepts like String
Theory, introduced by Albert Einstein, W.D. Ganns concepts and theories crossed the boundaries
of existing knowledge and practice with regards to our understanding of Time/Price relationships.

The relationships he described can only be understood to mean there are periodic or cyclic laws
or forces that are the underlying driving forces of Natural Laws and the Law of Vibration. By
learning to identify these unique dynamic factors, clearly described and attuned by price action
and rotation, one can clearly attempt to identify key pivotal time/price relationships that may,
with a high degree of accuracy, occur in the future.

www.tradersworld.com Nov/Dec/Jan 2016 16


I have found that in the stock its self exists its harmonic or inharmonious relationship to
the driving power or force behind it. The secret of all its activity is therefore apparent. By my
method I can determine the vibration of each stock and also, by taking certain time values into
consideration, I can, in the majority of cases, tell exactly what the stock will do under given
conditions.
Here, as I interpret W.D. Ganns statements, he is suggesting his analysis of market price action
falls into two categories of activity; harmonic and inharmonious. Thus, first we would simply
attempt to use something like the Gann Square of 9 to determine if market price rotation was
harmonious to the cyclical and Vibrational laws Gann had established, if so, then we may be
able to more clearly identify the time cycles that the market is exhibiting and then establish
critical support and resistance levels based on where market price is located within the support/
resistance levels identified by the Square of 9 formula.

One could assume that more intimate knowledge of the size and velocity of price rotation within
the chart would assist in determining the Cyclic and Vibrational variances one could rely upon
more heavily. One could also entertain the concept that longer term analysis of price charts,
Daily, Weekly and Monthly, would produce some very clear price targets in both directions given
the level of Vibration the market is exhibiting.

I find these statements and theories to be undeniable. Many of the best traders I have ever
witnessed had an immense amount of intimate knowledge regarding the symbols/markets they
traded and often, by simply attaining a vast amount of experience watching and exploring the
price action of said markets. These individuals were often able to pinpoint key price reversal
areas well in advance of price movements and make seeming impossible trades based on gut
experiences. We can now assume these traders were not lucky, but skilled beyond their wildest
expectations by the simple fact that they had, in some way or capacity, inherently identified
many of Fibonaccis and Ganns concepts and theories, put them into practice and were able to
adhere to trading practices that achieve results.

From my extensive investigations, studies and applied tests, I find that not only do the various
stocks vibrate, but that the driving forces controlling the stocks are also in a state of vibration.
These vibratory forces can only be known by the movements they generate on the stocks and
their values in the market. Since all great swings or movements of the market are cyclic, they
act in accordance with periodic law.
Keeping in step with some of the Fibonacci rules, this one statement by W.D. Gann illustrates
one key factor of all his greatest teachings; be like water. I interpret this statement as a
warning that all markets are volatile and fluctuate in vibration rates at different stages of
price advance and decline. Thus, what was vibrating at one level 15 minutes ago, may not be
vibrating at the same level now. Additionally, the controlling factors, a wide scoping term for the
Law of Nature, Cyclic/Periodical, Harmonic and Inharmonious price activity as well as Fibonacci
time/price symmetry are all in a state of constantly varying activity and vibrational turmoil.
Gann is stating that one has to continually adapt to the constant change in the markets at all

www.tradersworld.com Nov/Dec/Jan 2016 17


times and to gain the ability to properly observe, identify and adapt to these changes to become
more adept traders.

One component of advanced technical analysis I learned many years ago was the concept
of failure to fail and failure to succeed. In short, the action of failure to fail results in a
SUCCESS. The action of failure to succeed results in a FAILURE. Therefore, knowing and
understanding that, as traders, we can adapt to any changing market conditions by using this
results hypothesis allows us to develop a means of quickly determining a proper course of action
with our trading decisions. I believe much of Ganns analysis is based on similar principles from
the simple observations Ive referenced herein.

Thus, I affirm every class of phenomena, whether in nature or on the stock market, must be
subject to the universal law of causation and harmony. Every effect must have an adequate
cause.

This final statement is very telling in the nature of the all-encompassing structure and simplicity
of the statement itself. W.D. Gann is stating that every action, reaction and price formation
MUST be a result of the universal laws in conjunction with causation and harmony as related
to Ganns theories. In other words, there is no chaos in the markets. They are not random in
nature. There is a direct cause and effect mechanism at play in all aspects of the markets, life,
the universe and nature. This natural universal force, as we may call it, must be similar in
nature to Einsteins String Theory or some of the other Quantum Physics theories that propose
that all things are related to one another and that all opportunities, events and outcomes are
possible at all times.

When one considers this condition as it relates to the financial markets, the Bruce Lee quote
comes to mind in regards that water will find the path of least resistance in almost all cases
and that water adapts and molds itself to the constraints of its environment. Therefore, much
of Ganns trading structures must be based on the concept of identifying the key vibrations and
market turning points in past price action as a key to knowing when and where future potential
price objectives and turning points may occur.

The following examples expand upon our previous analysis by attempting to identify and
visually represent Gann Vibrational analysis in conjunction with our Fibonacci price analysis. By
combining these two somewhat similar, yet unique, methods of analysis, we hope to be able
to present an example of what W.D. Gann might have been seeing as some of the underlying
forces that drive market price activities.

www.tradersworld.com Nov/Dec/Jan 2016 18


Daily ES (S&P) Chart with Fibonacci Extension values & Gann Vibration indicators applied.
\

Daily EURUSD (Forex) Chart with Fibonacci Extension values & Gann Vibration indicators applied.

The Gann Vibrations indicators attempt to identify any variance of vibration in the markets by
identifying price rotation in comparison to historical price activity. As W.D. Gann stated, these

www.tradersworld.com Nov/Dec/Jan 2016 19


vibration cycles, as well as many other factors
of market analysis, are constantly changing. TradersWorld Magazine
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rotation and cycle structure as it happens.
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Please notice the upper Gann Vibrations


indicator is measuring the shorter term
vibrations in price action whereas the lower
Gann Vibrations indicator is measuring the
longer term vibrations in price action. This
is an attempt to more clearly illustrate that
these vibrations, as measured in comparison to
historical price action, can vary in length and
intensity as well as may encompass very large
price moves. QUARTERLY MAGAZINE SUBSCRIPTION
Read articles explaining classical trading
techniques, such as W.D. Gann, Elliott Wave,
Within these examples, one would interpret
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a 1.00 value as an upward vibration and
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that occurs within that upward vibration or
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value. A -1.00 value would be interpreted as
You also get our complete archive of 60 back
a downward vibration and one would look issues from 1986 to present. This, contains
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that downward vibration or cycle. One would examples, how-to-trade articles and much
also watch for cycle intensity to increase
format, which you can read online anytime.
or decrease over time. This activity would
In every issue, you get the information
represent frequent uncertainty in market you need to trade the markets better with
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www.tradersworld.com Nov/Dec/Jan 2016 22


The Grain Market Situation
Where Are We Now?
By
Daniele Prandelli

It was June 8th, 2015, when in my Newsletter I sent to the subscribers this Wheat chart,
following the comment:
Today we will look at a new Market which we are introducing in our Report Service: Wheat.
We think there is a good opportunity for a new uptrend in this Market, even if it may remain
sideways for a while. This simple chart shows something important:

Working with grains often means working with horizontal price lines, and here we have an
example. Because of many factors, we see Wheat is in a very good position in terms of a risk/
reward. The following Chart was published a few weeks ago in our Report Service, and was
not a bad call!
You can see on the current chart how this level was never crossed and we could make
many profitable trades buying near 450:

www.tradersworld.com Nov/Dec/Jan 2016 23


The Newsletter was sent out on June the 8th, the first good profits were made in the same
month, where you can see the strongest upward push of the year. Obviously there is not only
the study of the price behind it, but also a study of the forecast.
The study of the price and the Forecast is also very important for Soybeans and Corn, and
you can see from our studies how it was actually easy to trade them following our work. This
is the Forecast I sent to my Bulletin and Report Subscribers for the 2015, and we can say that

www.tradersworld.com Nov/Dec/Jan 2016 24


also this year it is working very well.

Lets start with our forecast of Soybeans. This is the 2015 Forecast Model (PFS-Polarity
Factor System):
And following is the Soybeans chart of 2015 till today:
The Forecast model was published in December 2014, in my 2015 Soybeans & Corn
Bulletin.
Our forecast for Corn was similarly accurate since, as you know, they move quite similarly.
Like I said before, we mainly study the price structure and the PFS Forecast. You have
seen how the forecast worked very well, and on our website you can also see how the 2014
Forecast worked properly, giving us the opportunity to know in advance the main trends to
follow: (http://www.sacredscience.com/Prandelli/Prandelli-2014-Grain-PFS-Bulletin-REVIEW.
htm)
However, I think that a forecast alone is not enough to be a good trader, because we dont
make money by just producing a forecast, we make money when we have a good plan to trade
the forecast, and the best thing to do is use price structure. I use many studies to do that, but
the most important, in my opinion, are the Planetary Lines and Geometry. Obviously, I cannot
explain here how I do that in detail, but today I feel I want to share with you a geometry that

www.tradersworld.com Nov/Dec/Jan 2016 25


can help you to understand where Soybeans are in space. This is a very simple geometry,
but probably new to some for this Market.
Soybean shows an expansion of trading ranges the higher it gets, and in the same way, the
lower it gets, the more the trading range becomes smaller. Its easier to explain with Charts
and numbers:

The top of SOYBEANS is: 1800 (2012)


1800/2=900 this is the first range of the price action of Soybeans, 900-1800

900/2=450 this is the second range of the price action of Soybeans, 450-900
450/2=225 this is the third range of the price action of Soybeans, 225-450
Here is the chart with all these divisions:

Up til 1960 the market was under 225, once it moved above it, 225 became the most
important support for the next 9 years. 1973, strong movement above 450, a new era started,
the range of Soybeans became 450-900, and 450 is the most important support area for
the next 35 years! We see some movements above 900, but only during emotional and fast
events.

www.tradersworld.com Nov/Dec/Jan 2016 26


In 2008 the final consolidation above 900 makes Soybeans reach 1800, and now we are
again around 900. Hence, you can understand we are right now around a very important level,
which means we can plan to do a great trade, from here a new trend should start!
Should we use this level to follow the uptrend or the downtrend? This is part of the forecast
and the strategy! If you are interested to our forecasts and studies, you can read more abot
our PFS Forecast Bulletin for the Grain Markets at: http://www.sacredscience.com/Prandelli/
PFS-Forecast-Bulletin.htm where you will also find our trading results, and reviews of our
forecasts for the past years.
We dont trade only Grains, but also the S&P500, Gold, Crude Oil and more. Yes, I said we
trade, because, first or all we are traders, and on our website you can also see real Activity
Statements showing the results of our trading strategies.

In about one month the new 2016 S&P500, and Grain Bulletins will be ready, so stay tuned!
Best Regards,
Daniele Prandelli

e-mail: info@iaminwallstreet.com
Courses & Bulletins: http://www.sacredscience.com/Prandelli/PFS-Forecast-Bulletin.htm
Short Term Advisory: www.iaminwallstreet.com
High Probability Trading Techniques - S&P500, Crude Oil, Gold, Corn, Soybeans, FOREX,
Stocks and S&P/ASX 200

DISCLAIMER
It should not be assumed that the methods, techniques, strategies or indicators presented
by e-mail, e-book, blog or files will be profitable or that they will not result in losses. There
is no assurance that the strategies and methods presented in here will be successful for you.
Past results are not necessarily indicative of future performance. The examples presented
here are for educational purposes only. The data used is believed to be from reliable sources
but cannot be guaranteed. The methods presented are not solicitations of any order to buy or
sell. The author, publisher, and all affiliates assume no responsibility for your trading results,
and will not be liable for any loss, damage or liability directly or indirectly caused by the usage
of this material. There is considerable risk of loss in Futures, Stock and Options trading. You
should only use risk capital in all such endeavors.

www.tradersworld.com Nov/Dec/Jan 2016 27


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THE LAW OF CAUSE & EFFECT


CREATING A PLANETARY PRICE-TIME MAP OF MARKET ACTION
THROUGH SYMPATHETIC RESONANACE BY DANIELE PRANDELLI
The Law of Cause & Effect unravels the correct application of KNOW IN ADVANCE!
WD Ganns Planetary Longitude Lines. This cour se explains
why most analysts have failed to use these lines! There is a EXPLAINS MISSING CALIBRATION FACTOR WHICH
missing conversion factor or calibration rate which must be FITS PLANETARY LINES TO ANY CHART!
used to adjust the planetary relationships to the scale and DETERMINE IMPORTANT ENERGY LEVELS USING
vibration of the market at any particular price level. This PRECISE MATHEMATICAL RULES
book CRACKS the conversion factor and makes Planetary KEY PRICES TO TAKE TRADING POSITIONS
Lines one of the most valuable tools youll have in your
toolbox.
FORECAST CLEAR TARGET EXIT LEVELS
These lines determine both price and time movements! They are KNOW IMPORTANT TIME TURNING POINTS THRU
one of the easiest but most powerful of all Gann tools. Once CONFLUENCE OF PLANETARY LINES
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Prandellis Polarity Factor System forecasting


PRANDELLIS NEW TRADING COURSE! model is based upon the power ful insights of the
THE POLARITY FACTOR SYSTEM great market master, W. D. Gann, and particularly
AN INTEGRATED FORECASTING & TRADING STRATEGY upon his Master Time Factor, presented in one of his
rarest and most secret courses. Prandelli has
INSPIRED BY W. D. GANNS MASTER TIME FACTOR
redeveloped Ganns Master Time Factor and created
BY DANIELE PRANDELLI proprietary software to create yearly forecasts of the
BLACK SUEDE HARDCOVER 242 PAGES & SOFTWARE market with an accuracy similar to that produced by
Gann in his Supply and Demand Letter, almost 100
CREATE DIRECTIONAL TIME FORECASTS years ago. This PFS timing technique forecasts
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LIKE WD GANNS IN MULTIPLE MARKETS accuracy, giving clear directional indications. It also
S&P, CORN, WHEAT includes a sophisticated risk management system and
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INTERNATIONAL 951-659-8181 SEE OUR WEBSITE FOR OUR FULL CATALOG OF COURSES!

www.tradersworld.com Nov/Dec/Jan 2016 28


www.stormchasertech.com
admin@stormchasertech.com

Register on the website for a 7 day free trial!

Kairos, greek for opportune and decisive moment, is Stormchaser Technologies' trading application. Kairos
consists of 5 modules that allow you to search for the opportune and decisive moment to trade. Kairos, the nexus
of ancient knowledge and modern technology, lets you research the cause of cycles hidden in the markets.
Harmony of Discord(HoD)
The HoD module scans multiple time frames to find
potential balance and imbalance which are shown
graphically and in a table. By default only balanced
nodes are shown but it can be configured to show
imbalanced nodes as well. Many times the HoD shows
balance from multiple areas. Using potential turns
that are in balance, in combination with price levels,
confirmation with Gann Angles, or with your
own trading system, can be a powerful way of
detecting low-risk entries.

Fractals
The Fractal Module scans for repeating patterns in the
market. Price/Time patterns are matched based on
Time/Price criteria and Fractals can be detected on
multiple timeframes. Once a match is found for the first 3-
4 vectors, the pattern is often continued. Patterns are
searched in 3-4 months worth of intraday data.
Parameters can be specified to filter the "fit" of the fractal.

Gann Planetary Time Projections


Market turning points often correlate with Planetary
movements, as opposed to the static linear cycle.
With this research tool, you can determine which
planet, planet pair and degree movement correlates
with your market. There are over 40 planets or planet
pairs that can be tested for any degree movement.
Kairos can be configured to get historical price data
from CSI, enabling you to research your markets
movements back decades for many markets.

Gann Planetary Price

Markets often correlate with Planetary Price. The Planetary


Price module can be used to plot harmonics of Planetary
Longitude. The module displays longitude/harmonics for
15 bodies.

Gann Angles & Squareouts


The Gann Angles Module gives you 6 customized
ways to draw Angles. It also includes Geometric
Squareouts - Using two turning points the user
selects, horizontal lines from multiple turning points
are displayed. Where these interest with the trend
line indicate potential turning points in the future.

www.tradersworld.com Nov/Dec/Jan 2016 29


The CIT
Toolbox By George Krum

CIT stands for change in trend. The CIT Toolbox combines some of the most popular technical
analysis tools from our mobile and web based applications, and makes them available on the
TradingView platform.

But before we discuss whats included in the toolbox, first a few words on why we chose to release
this add-on for TradingView (TV). The reason is simple: TV offers some of the best and most
advanced browser based HTML 5 charts which will run on any browser, no matter what Operating
system youre using. In addition to dozens of indicators, drawing tools and real time market news,
TV also comes with a large and active community of traders with whom you can discuss and
analyze your favorite tickers, and who can be an inspiration for generating new trading ideas. And
the best part is that access is free and universal, and you can subscribe only to the add-on service
you are interested in.

The CIT Toolbox, available from the TV MarketPlace, offers five proprietary indicators which cover
different aspects of technical analysis, but work seamlessly with each other. They all share one
simple goal: to help you avoid analysis paralysis, and to keep you on the right side of the trade
under any market conditions and in any time frame.

Heres a brief description of these indicators with real time examples.

CIT Angles are inspired by the pioneering work of W.D. Gann and automate his powerful tool,
making its use effortless for the 21st century trader. Although angles have a lot in common with
moving averages, they offer several advantages: first of all, they give clear support/resistance
levels which can confidently be projected into the future; and second, they are automatically
drawn from swing highs and lows with the help of the built-in swing detection algorithm. In
other words, CIT Angles solve two of the major problems facing analysts trying to find a practical
application for Ganns ideas:

1. they automatically pick the correct step/rise of the angle, in tune with the unique rate of
vibration of the individual ticker, and

www.tradersworld.com Nov/Dec/Jan 2016 30


2. they automatically and in real time select the appropriate swing points from which to be drawn.

Among the other indicators in the Toolbox, they most likely will be the first to signal a CIT. The
daily chart below shows that the CIT Angles on the SP500 signaled a CIT on August 19th, preceding
a 200+ drop in the index, and then caught the next 160+ point upswing (Chart 1)

Chart 1

The second indicator in the CIT Toolbox is CIT Pivots. They are designed to appear only at price
levels that mark swing turning points (as detected by the indicators algorithm). What sets them
apart from other swing indicators is their ability to signal CITs with little or no lag. CIT Pivots
offer an easy way to keep track of higher highs and lower lows, and for detecting and counting
waves. For option traders they provide a convenient tool for choosing strike prices in executing
their favorite option strategies. The appearance of a CIT Pivot along with a CIT Angle is a strong
confirmation that a CIT has taken place (Chart 1) above.

The next tool in the CIT Toolbox is the CIT Bars indicator. CIT Bars are designed to eliminate
noise from random price moves, and to provide a novel visual approach to defining trend. As W.D.
Gann said: The great fundamental rule that you must learn in order to be a success is to follow
the trend of the market. If you cannot determine a definite trend, get out and wait until you can.

www.tradersworld.com Nov/Dec/Jan 2016 31


CIT Bars offer several advantages over Japanese candlesticks, Renko, Kagi and Heikin-Ashi charts.
They are simple to interpret, they include the element of time (absent from Renko and Kagi), and
they can be displayed along with price, which allows users to see hidden support/resistance levels
in real time. Another useful property of CIT Bars is that they tend to get longer when the trend
gathers strength, and shorter when the trend weakens or is about to end. The chart below (Chart
2), shows how easy it is to interpret CIT Bars, and highlights their ability to filter out the noise
from random price moves:

Chart 2
The next two tools make visualizing short term market swings even easier.
CIT Trend is designed to change color when short-term CITs are detected. Its goal is to eliminate
subjectivity and emotions from the trading process, and to help you decide when to enter, exit or

www.tradersworld.com Nov/Dec/Jan 2016 32


stay in a trade. CIT Signals are designed for those who need a stronger visual stimulus/indicator
for when to go long or short, as they change the background color of the chart and are hard to
miss. They are based on a pattern recognition algorithm, and can be used as a standalone tool
or in conjunction with any other indicator. They are useful in detecting the beginning and end of
counter trend moves in an established trend, and as CIT confirmation signals. As a rule of thumb,
in order to be valid, a new CIT Angle or CIT Pivot should be confirmed by the presence of a CIT
Signal (Chart 3, SPY 30 min):

Chart 3

In summary, the CIT Toolbox offers a mix of proprietary swing, trend and pattern recognition
indicators designed to give users a complete and unique trading and technical analysis perspective,
applicable to any instrument in any time frame. Combined with the advanced charting, drawing
and social networking capabilities of TradingView, they offer users a stimulating and profitable
experience.

www.tradersworld.com Nov/Dec/Jan 2016 33


www.OddsTraderApps.com

www.tradersworld.com Nov/Dec/Jan 2016 34


How to Develop the Discipline to Stop
Impulse Trading
By Rande Howell

I dont know what happened to me. I had how impulsivity and work are interlinked.
been doing so well I was on fire. Then I How many times have you started the trade
took a couple of losses and a need to get my day with thoughts like these, Okay, its time
money back seized me. I lost control and my to get to work, its trading time its time to
trading rules flew out the window. I wanted make something happen. ? After all, you
to make things happen, but I got creamed have got to be doing something, working, if
and took some drawdowns that I should never you are trading right? You cannot just sit
have been sucked into. I know better than there and expect things to happen. Youve
this, but in the heat of the moment, I cant got to do something to make money.
seem to help myself. Wrong. The very urgency to act, to make
things happen, that probably afforded you
Willpower Is Never Enough success in business or corporate life becomes
Whether its revenge trading, over trading, the destructive basis of chasing trades in the
over confidence, or chasing trades, many brave new world of trading. In your work
traders experience a world of hurt when life before trading, being in charge and in
discipline fails and impulsivity short circuits the control was such a strong way of proving your
rational trading mind. How many times have mettle and of proving yourself a winner that it
you declared, Im going to be a disciplined became ingrained as a habit that you did not
trader and trade my plan? only to be question. When you encountered uncertainty,
ambushed by impulsivity again and again. you forced your will and made things happen.
If you are like most traders with an impulse Many a self-made man or woman owe their
tendency, this has happened more times than success to this notion of work as doing.
you can count. This very bias to act sooner rather than
Why is chasing trades such a difficult later is the basis for chasing the trade. With
behavior to break? You would think that the bias to act already in place, the traders
experiencing the pain of drawdowns would mind is fooled into believing he is seeing solid
be more than enough motivation to stop set-ups where a rational mind would not see
impulsivity in its tracks, but its not. And if set-ups that are worthy of the risk. The bias
willpower alone could stop the bleeding caused to act (chase) produces an over-eager trading
by an impulsive mindset, then the problem mind that sees acceptable trades where a
would have disappeared long ago. But for seasoned trader would see none.
many traders, that is not the case. The successful trading mind has to be
The problem is a complex mixture of both retooled from the success mind that the
biology and psychology. It starts with your trader brought into trading. The mind that
unexamined beliefs about work and action. A produced success in other endeavors ( a bias to
traders notions about work will drive how they act and get things done)is simply not the mind
trade, for better or worse. Lets first examine that produces success in trading. Success in

www.tradersworld.com Nov/Dec/Jan 2016 35


trading is built upon the learned bias to be conquering, of prevailing against all odds, has
patient. Instead of going and getting the trade, been a good adaptation for the survival of the
the experienced trader waits for the trade to human species, but not for achieving success
come to him. Patience becomes the driver in trading. Historically, if the human lost the
of success not doing. And the quickest battle, then his life was gone. It makes sense
path to trading success is the development to believe in your capacity to prevail in cases
of patience as a skill. The successful trader like this. But the trader wants to live to trade
practices patience as he trades, even if it is another day.
not natural to him. And he regulates the bias What does this look like in trading? Lets
to act on impulse because he has learned that look at revenge trading. You take a couple
this urgency clouds his trading mind, and he of losses. The first one you took just as an
no longer has the patience to think clearly. everyday hit that every trader learns to take as
This usually is a learned process because it part of the game. Then the second and third
does not come naturally. ring your bell. Ive got to get back what Ive
lost. Im going to get revenge. In the midst
The Biological Motivation to Chase of this danger, testosterone for the courage
will Set Up the Trader to Act to fight and dopamine for the confidence that
Impulsively you WILL win, pulse through your veins and
Have you ever experienced the rush get to the thinking brain.
traders get when they jump into a trade Now youre in a fight that you have to win.
expecting to win? It feels good, powerful, A surge of energy catapults you into action.
and confident. Everybody wants to feel this You are going to beat the enemy and take
way. But its dangerous. How can something back your ground. You are going to prevail.
that feels so good be so bad for you? In Clouded by reactive thinking, you sink deeper
many other areas of your life, this is the signal and deeper until you are fried. There is no
that you are in control and in charge of your enemy that you can see. The evolutionary
destiny. But not in trading. brain and mind were fighting a war with a
That rush that feels so good is a phantom menace. Your mind has conjured
chemical cocktail composed of testosterone up the entire battle. There is no enemy.
and dopamine. The testosterone has you There are only the beliefs that you bring to
believing you can control (by sheer will power the management of uncertainty.
and momentum) the outcome of the action The impulse chemistry was seductive and
you are taking. (In this case, a trade). The powerful. It made you believe you could win
dopamine has you feeling good and confident in that moment. Yet the rules of trading are
and powerful. It also causes you to distort contrary to the rules of biological survival. In
risk. In hunting game and in battle, you truly trading the rules are built around probability
need to believe you are invincible and will and applying a consistent standard method to
prevail. And that is what this chemistry of the manage both loss and reward. In the brain
mind is all about. you brought from the past, losing was equated
It is not a mental chemistry of managing with biological threat. Probability was not
risk. It is a chemistry of being in control of an environmental pressure that shaped your
risk. In trading, it is called over-confidence reactive responses to stress.
or irrational exuberance. The thrill of
www.tradersworld.com Nov/Dec/Jan 2016 36
The Messy Part of Impulsive ignoring the pain, the trader jumps in again
Trading Personal Psychology and again without first soothing the pain of
We have examined how past performance loss. This starts the avalanche called revenge
and biology greatly influence impulsive and over trading.
forms of trading, but what is going on in It is the psychological vulnerability
the psychology of the trader that keeps him experienced by the exposure to uncertainty
locked into destructive impulsive patterns that causes the avalanche to become
in trading? In over-trading, the thrill of dangerous. It is the traders myth of control
the chase overcomes your good sense and over outcome, so important to the traders
produces disastrous trading performances. In untrained psyche, that is busted. And it is
revenge-trading, the motivation is to get back this belief structure that has to change for the
what has been taken from you. Whats the trader to evolve to a higher level of trading
common denominator that hijacks a rational performance.
mind and produces impulsive trading? Only after all the magical thinking about
It is the failure and the meaning of that success in trading has proven useless can
failure that counts more than the pain of loss. the trading mind really be built. It is rare for
Logically, it seems that if you feel pain, you someone to come into trading with a mind
would stop the behavior that is causing the that is suitable for trading. Most fail at trading
pain the drawdowns caused by over-trading because they realize way too late that they
and revenge-trading. But that is not the way have to become the change they want to see
it works in the complicated psychology of in their trading. Or as an experienced trader
performance. once said, You can fool yourself, but you cant
The trader sees the failure or loss as personal fool your trading account into fooling itself.
inadequacy. He or she takes it personally, as Your trading account will show you where
if the performance resulting in the loss was, to look for the problems in your trading and
in fact, a reflection of the traders inadequacy, where you need work.
mattering, worth, or powerlessness. And It is possible to retool the mind specially
avoidance of seeing yourself as bad or flawed for trading success if you are willing to listen
is far worse than the pain of a single loss. In to your trading account as it speaks to you
that avoidance the trader has to prove himself about the pain of loss. This is the beginning
by winning. Reacting to perceived threat, the of the end of impulse trading in whatever form
trader has to prove himself and instinctively it takes. You train yourself to separate your
reacts in anger (a sense of power) to take personal worth from your performances. This
back what is his. The problem is that anger is the great psychological leap that has to be
mixed with fear is driving the thinking of the made to move from impulse trading to patient
trader now. Clear thinking has been thrown trading.
out of the trading mind until he regains his In the process your understanding of work
senses (after the smoke clears from the fire as doing something transforms to the work
fight). of patience waiting for the market to give
In over-trading, the trader feels the thrill you what it is willing to give. And for the
of winning (of proving how powerful or mature trader that is enough. More than
adequate he is), which creates a chemistry of enough.
irrational exuberance that leads to minimizing
the potential of risk driven by a belief that the
good times are going to roll on forever. By

www.tradersworld.com Nov/Dec/Jan 2016 37


Trading on Target
Free Newsletter

Adrienne Togharie, Traders Success Coach

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to receive a free newsletter
on Discipline for Traders
Adrienne Toghraie, Traders Success Coach, writes
articles that are dedicated to those of you who have mere
minutes a day to absord helpful ideas and creative solutions
to nagging problems about discipline in trading.

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on Discipline for Traders

www.tradersworld.com Nov/Dec/Jan 2016 38


Joy & Maintaining
Trading Success
By Adrienne Toghraie, Traders Success
Coach
www.TradingOnTarget.com

One of the questions that I ask investors/ Can Give You a Reason to Succeed
traders who come to me for coaching is, I know a number of individuals who gave
What brings you joy in your life? The up successful careers in the markets because
answer to this question should just pop they had no reason to be successful. There
out. After all, successful investors/traders was nothing in their lives that they wanted to
are highly goal oriented, disciplined, and support, to nurture, and to see to completion.
ambitious people. How can you have those
qualities in abundance and not know what Give You the Energy, Enthusiasm
makes you happy? Yet, strangely enough, and Perseverance to Keep Going
a fair number of people cannot answer this Joy is the juice in your veins, the lift in
question. your step, and the air under your wings. Its
Okay, Adrienne, you say, suppose Im what keeps you working on that system and
one of those people who doesnt know what finding the answer to that nagging problem.
brings them joyWhat does that have to do
with making money in the markets? Combats Depression and Pessimism
The answer is that if you do not know what Negative emotional states can cause a
brings you joy, it is very likely that you are trader to miss trading signals and fail to take
not going to be able to sustain a long and advantage of opportunities. Pessimism can
successful career. Why? actually result in depression, and can also
deepen and extend a depression. Depression,
The Things that Bring You Joy: on the other hand can put a rapid end to a
trading career.
Can Sustain You When Things go
Bad Make You a Joy to be Around
When you are having a bad day, when you A spouse who only sees you when you are
have experienced a serious trading loss, when feeling joyless can begin to feel that you are
you are feeling depressed because a close a liability in her life. He or she may need to
friend died, when your son wrecks your car, fill life with the company of those who make
or when you begin to question what life is all life happy and pleasant. After all, dont you
about, you need to have things in your life want to be around people who are happy
that bring you joy. It is important to know and can make you smile and laugh? A good
immediately what they are so that you can and supportive marriage is one of the most
call upon them to remind you that life is still important assets a trader can possibly have.
good, even when some things about life are
going badly.

www.tradersworld.com Nov/Dec/Jan 2016 39


Help You to Think More Creatively a reason to succeed. Without a fount of joy, I
and More Clearly could not squeeze any excitement, energy or
Imagination works much better when the enthusiasm from him for the rigors of putting
mind is at peace than when it is filled with his life back together.
miserable and obsessive thoughts. Great When Charles and I got together for
ideas and insights are more likely to come private work, I pressed him to go back to
in moments of joy than when the mind is in times in his life when he was doing things that
turmoil. Opportunities seem to abound when made him happy. It turned out that he had
you are happy and positive. These same loved to play the saxophone when he was in
opportunities will be difficult to see when you school. He had also loved to read historical
are mired in pessimism. The most successful accounts, especially ones about submariners
investors and traders are able to use intuition in World War II. In his childhood, he had
as a reliable indicator in making trading lived in Connecticut and had loved camping
decisions. Intuition is available only when in the woods. As we progressed, he began
your mind is at peace. to discover that there were many things that
had once brought him joy that he had slowly
Allow You to Feel More Joy in the abandoned or forgotten. I convinced Charles
Things that Normally do not Bring to spend time walking through the beautiful
You Joy North Carolina forests near his home, dusting
There is a spill over effect. When you are off his old saxophone and starting to play it
able to feel joy in one area of life, it spills again, and going to the library to find some
over into other areas of your life. This effect of the newer history books and accounts from
works in the opposite way when you are World War II.
feeling angry, pessimistic and upset. Without conscious thought, Charles began
I once worked with a client who began our to find a new energy and passion for getting
session with a long series of sad stories and back into the trading game. With his new
laments. Clearly, Charles life had not been sense of worthiness, associates who knew his
going well for some time. His wife had left ability as a money manager were eager to
him, his children avoided him and he had given invest their capital with him when they saw
up his career as a successful money manager. that the old Charles was back. He is now
Charles was living with close friends who tried earning money for his clients and has made
to encourage him to get on with his life and positive steps to change his whole life. When
recommended that he call me. When I talked I next saw him, he had a bounce in his step,
to him, he sounded hopeless. At a point in the he was dressed like a winner, and he was
conversation, I asked him what brought him filled with a sense of optimism. Charles is
joy in his life. He hesitated for a moment and well on the way to recovering the success and
barked at me, What relevance does joy have happiness in his life. The lesson for him is
to this conversation? Did I not understand that if he had allowed himself to do the things
that there was no joy left in his life? that had created joy in his life, he would not
I was undeterred. Joy was the central issue have reached the bottom.
for Charles. If he had nothing that brought Like Charles, if you cannot answer the
him joy, it was unlikely that we would find an question, What brings you joy in your life?
anchor to keep him from drifting further from Then, you can also look back to the days when
a successful life. Without something to bring you were carefree and spent time doing the
him joy, I would have a hard time giving him things that made you happy. As you begin

www.tradersworld.com Nov/Dec/Jan 2016 40


to list them, you will discover that the list
will begin to expand rapidly. Check off three Order all Back Issues
simple things that you would like to add back of Traders World
into your life, and then go for it. You will be
amazed at the spill over effect on your work Magazine on CD
in the markets.
Contains all of the back issue articles
Conclusion of Traders World Magazine on CD in a
If you can figure out what brings you joy, pdf reader format. Click Here.
then you can focus your thoughts and energy
on those things in your life. The resulting
positive energy will seep into the rest of your Sale
life, including your investing and trading and
57 Back Issues
will open up new opportunities for success.

ADRIENNE TOGHRAIE, a Traders Success


Coach, is an internationally recognized
authority in the field of human development
$99.95
$49.95
for the financial community. Her 13 books
on the psychology of trading including,
The Winning Edge series 1-4 and Traders .
Secrets, have been highly praised by financial
magazines. Adriennes latest book published Sale ends July 30th, 2014
by Wiley, Trading on Target, is available at
Amazon.com. Adriennes public seminars and
private coaching have achieved a wide level
of recognition and popularity, as well as her
television appearances and keynote addresses
at major industry conferences.

Contact Information
Contact Name Adrienne Toghraie,
Traders Success Coach
Company TradingOnTarget.com
Website www.Tradingontarget.com
Phone 919-851-8288
Email adtoghraie@gmail.com
Adrienne@TradingOnTarget.com

www.tradersworld.com Nov/Dec/Jan 2016 41


Market Timing The Difference
Between Success and Failure
By Andrew Pancholi

Market Timing The Difference Between Success and Failure

One of the biggest problems we face as traders and investors is knowing when markets are
likely to change direction.

It is well known that the most money is made following trends. However, most trend followers
place stop losses above or below the previous swing or even two swings back. Consequently,
when the trend does change, a vast amount of profits are given back. This can be as much as
half.

This is the case regardless of whether you are holding positions for a few days or several months
and even years.

Hence, the value of being able to identify, in advance, time zones of potential directional change
is immense and can provide a critical edge.

In fact several advantages are created. Having been caught out myself using the two swings
back rule, I set out on a mission.

My journey began back in the 1980s and involved travelling the whole globe. Not only did I meet
with some of the largest fund managers and traders in the world, including a massive player in
the Middle East, I also began firm and long-standing friendships with Nikki Jones and Peter Pich.

Sadly neither Nikki nor Peter are with us today. Nikki owned the collection of the works of WD
Gann and Peter was President of Gannsoft Publishing, the corporation that had developed a very
powerful program called Ganntrader. I went on to work with Peter until his untimely death.

Peter had previously collaborated with Billy Jones, the late husband of Nikki. Were it not for Billy
and Nikki, most of us would not be familiar with the work of W D Gann. Billy acquired the entire
collection from Ganns former business partner, Ed Lambert, back in the 1970s. Several courses
were republished and the word spread. Gann became the phenomenon that we now know it to
be.

Being close to the Jones family, I was confidentially asked to help catalogue the entire vault.
Cody Jones and myself spent the best part of two weeks making discovery after discovery.
Ganns work is now seeking a new home.

www.tradersworld.com Nov/Dec/Jan 2016 42


Thats another story! Contact us!

From 2002, having gained the support of some investors, we built a team and together we
programmed what I believe to be the most powerful cycle timing system in the world.

The biggest breakthrough came when we created The Crisis Matrix. We listed every major crisis
we could find and placed them on a spreadsheet. The spreadsheet is five feet square by five feet
wide!! The patterns emerging were ones that we had never seen published anywhere before!

We continued to incorporate every type of market timing that we had come upon including

Proportionality
Symmetry
Dynamic symmetry
Static cycles
Dynamic cycles
Seasonality
As well as numerous forecasting techniques.

Another technique came to me after contemplating the subtitle of Ganns novel Tunnel Thru
The Air. This is Looking Back From 1940. We discovered a very accurate forecasting system
by projecting back from the future and this is one of the key techniques programmed into our
system.

As the system is complex and requires some interpretation, we distill this information into The
Market Timing Report.

+++++++++++++++++++++

Ive known Andy for a number of years. Heknows cycles better than anybody Ive ever met! When I saw his
model, I thought thats exactly theway a model should look!

Harry S Dent
NY Times Best Selling Author and Forecaster

+++++++++++++++++++++

The output from this system has been very accurate as The Market Timing Report testifies.
Each month, in advance, we write the key dates down where we expect turns. All but one of the
covers has nailed all the major turning points of the year.

www.tradersworld.com Nov/Dec/Jan 2016 43


Not only this, the pilot report provided the time and price, to the day and to within a handful of
ticks of the major high in the Euro, from which we have seen a $.36 decline or put another way
$36,000 per contract. Readers were also forewarned of the cycle that caused Oil to collapse.

The August edition not only forewarned of the impending US Equity sell-off, it even gave the
date of 18 August as a key cycle date. The rest was history. Using this information our funds
were up 11% during that month. These are just a few of the major successes.

The Market Timing Report is not a stand alone product. It is not the Holy Grail and cannot be
used in isolation.

It is not for those who have no system, either fundamental or technical.

Focusing on S&P500, Crude Oil, Gold, Dollar Index and EURUSD, it is an excellent tool to fine
tune position and campaign entry and exits when combined with other techniques.

The complexity of the cycle sets involved can be resolved by as shown broken down into
different histogram sets.

The simplest way of explaining this is that wherever there is a histogram spike, a turning
point can be anticipated. The spikes on the lower display are circled in red, as too, are the
corresponding turns. Notice spikes circled into the future. These are times when we can expect
potential trend change.

www.tradersworld.com Nov/Dec/Jan 2016 44


Practically speaking, this means that these are time points when existing trending positions
will be at greater risk from reversals or occasionally accelerations. When these timing points
coincide with price support and resistance levels, we know these levels are likely to hold.
Conversely, how often have you used a Fibonacci level and the market has just gone through
it like a knife through hot butter? If price is approaching such a level the timing cycles provide
confirmation of their validity.

These would be times when stops should be moved closer or positions partly offloaded, in other
words, profits taken.

For portfolio managers these are occasions when hedging should be increased or profits taken.
Conversely, if no great cycles exist then there is a high probability of the trend remaining intact.

The Market Timing Report enhances probability for traders who use The Commitment of Traders
Reports these can often reveal potential unfolding trends but are inexact in timing.

Results for Murrey Math traders can be greatly improved, too, in the same way as Fibonacci
traders, as mentioned above. You will get a greater feel for which levels will hold.

It goes without saying that this information is vital to all trend followers.

We have found the use of Andrews Pitchforks to work extremely well with The Market Timing
Report. Here is a perfect example:

www.tradersworld.com Nov/Dec/Jan 2016 45


The December edition published Nov 30th last year stated:

This is what happened:

However, the real question is how to trade such points. This is how we did it.

The time cycle on 5th Dec coincided with the market retesting the upper parallel of the pitchfork.
Our next time target was the 17th Dec and the market traded on the median line (almost
coincident with the .382 retracement) - there is an 80% probability of the market reaching this.
It was a safe stop and reverse with the next time window being the 26th.

www.tradersworld.com Nov/Dec/Jan 2016 46


As the report is published monthly we do not focus on price. But this is not a problem as we
know which way price is heading into each turn point. A review of the market structure at this
point always provides sufficient evidence.

The most potent benefit is knowing when an event may be about to occur. Trading INTO a
cycle can be more effective and profitable than trading OUT of the cycle because you are not
trying to pick a top or bottom.

The report also looks at seasonality identifying high probability moves as well as stating
significant daily percentage directional moves.

For example, since 1985, the S&P 500 has been up on the 28th October, on 71.1% of occasions.
This information is valuable. If the market in in an uptrend and there is NO cycle, then the move
has a high probability of continuing up. Conversely, if the market is sitting on support then a
reversal is more likely.

www.tradersworld.com Nov/Dec/Jan 2016 47


The benefits of The Market Timing Report when combined with other systems can bring
incredible synergies.

We are extending a RISK FREE special offer to readers of Traders World.

We are offering you a full 28 day No Questions Asked money back guarantee. Just contact us
for a refund within that time.

The normal subscription is $1500 per year.

You can

SAVE 47% and receive a 12 month subscription for $675

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We will also be releasing individual annual reports on Wheat, Corn and Soybeans. Please check
the Traders World Site for more information in due course.

www.tradersworld.com Nov/Dec/Jan 2016 48


Ratio & Proportion applied to the
Elliott Wave Principle
By Peter Goodburn

Ralph Nelson Elliott left us a great legacy we might have expected or hoped certainly,
in his monograph The Wave Principle I have experienced failures too. Some have
(1938) and it has most undoubtedly stood worked quite well, but then degraded over time
the test of time in its robustness as a tool making them redundant sometime later. The
for price-prediction, especially during the EWP is so dynamic in its predictive qualities
last decade when many other methodologies that there is a human temptation to make
have collapsed. It has its detractors though, bold statements at key intervals but in the
and despite being a strong advocate and heat of the moment, obvious clues get missed.
practitioner of the Elliott Wave principle (EWP) There is one element to the EWP however that
myself, am sympathetic of their dismissive is the key in resolving this issue and that is
remarks. Why is that? Simply put, some big combining Elliotts original concept of Pattern
calls or forecasts have not unfolded in the way Repetition with his less known studies of Ratio
& Proportion.

Figure 1
www.tradersworld.com Nov/Dec/Jan 2016 49
Elliotts Introduction to the applying these to both time and price activity.
Fibonacci Series The common reference used was the golden
Soon after publishing The Wave Principle, ratio, 61.8% or its reciprocal 161.8%. There
Elliott was sent several books, recommendations are scant references of its use but in another
and various articles related to Natural Laws of of his educational bulletins dated August 11,
science & metaphysics by Charles J. Collins, 1941, Elliott described a decennial triangle
director of Investment Council Inc. These unfolding in the Dow Jones Industrial Averages
included works from Professor Arthur Henry that began from the (orthodox) peak in 1928.
Church entitled On The relation of Phyllotaxis The triangle appears as the same structure
to Mechanical Laws and Sir James Hopwood that we know today, consisting of five price-
Jeans The Mysterious Universe. This also swings unfolding into a sideways trading range
led to Elliotts investigation of the Fibonacci enclosed by two narrowing boundary lines
sequence that he referred to in his Educational that form towards an apex. In this article, he
Bulletin dated October 1, 1940 in which he lists the successive waves unfolding to ratios
stated The Basis of the Wave Principle is very of 0.618%, the origin of this formula that we
oldPythagoras in the sixth century B.C., use today - see fig #1.
Fibonacci in the thirteenth century and many C.J. Collins published a supplement to the
other scientists, including Leonardo da Vinci Bank Credit Analyst (Bolton, Tremblay & Co.)
and Marconi, have all shown that they were in 1957 that forecast Primary V could be
aware to some extent of this phenomenon quite sensational, taking the DJIA to 1000 or
Fibonacci was an Italian mathematicianHis more [in the early 1960s] in a wave of great
Summation Series of Dynamic Symmetry speculation. This proved uncannily correct
agrees in every respect with the rhythmic even though it took until 1966 to be fulfilled
count of the Wave Principle. despite this, it is not obvious how Collins
What Elliott read and learnt in the years that measured the advance that turns out to be
followed his receiving those books from Collins the top for cycle wave 3 as quoted in Frosts
ignited his fascination and shaped his theories & Prechters book although we do know that
of the Wave Principle around the concept of the three years later, Bolton used the fib. 161.8%
Fibonacci Summation Series and its inherent (correlative) ratio of the 1949-56 advance
relationship to Ratio & Proportion. to the subsequent low on 1957 to determine
the high to 999 but these men were in
Elliott/Collins/Boltons use of Ratio correspondence together after Elliotts death
& Proportion in January 1948.
Although the Fibonacci summation series As A. Hamilton Bolton stated in his critical
did distil Elliotts concept of Natural Laws appraisal of the Elliott Wave Principle (1960),
governing the progress and regress of his The ratio of 61.8 to 100 and 100 to 161.8
waves, he mainly gave emphasis to the fact became a central part of Elliotts theories
that five waves of trend and three waves of in regard to both TIME and AMPLITUDE.
counter-trend totalling eight are numbers of Thus Elliott pointed out a number of other
the series. Only sometime later did he examine coincidences. For instance the number of
Fibonacci-Price-Ratios (fib-price-ratios or points from 1921 to 1926 (i.e. the first 3 waves)
FPRs), the derivative of the series, and began were 61.8% of the points of the last wave

www.tradersworld.com Nov/Dec/Jan 2016 50


from 1926 to 1928 (orthodox top). Likewise, 1966 at 1001.10!
in the 5 waves up from 1932 to 1937. Again
the wave from the top in 1930 (297) to the Pattern and Form takes Precedence
bottom in 1932 (40 DJIA) is 1.618 times the Hamilton Bolton stated that wave form
wave from 40 to 195 (1932 to 1937). Also, takes precedence over proportionate analysis
the decline from 1937 to 1938 was 61.8% of and this has since been echoed by others
the advance from the 1932-37 (DJIA points). since. But how much progress has really been
Should the 1949 market to date adhere to this made in the area of Ratio & Proportion during
formula, then the advance from 1949 to 1956 the last forty-odd years? Do they still hold
(361 points in the DJIA) should be complete true or could these be just out-dated opinions
when 583 points (161.8% of the 361 points) of the past?
have been added to the 1957 low of 416, or
a total of 999 DJAI. Alternatively 361 points Ratio & Proportion Shaping the
over 416 would call for 777 in the DJIA. Future
Interestingly enough, this measurement The use of computers and modern software
proved incredibly accurate with the DJIA applications that can download limitless
trading six years later to a high in February amounts of historical and intra-day data
has enabled us to accelerate our knowledge

Figure 2

www.tradersworld.com Nov/Dec/Jan 2016 51


in the area of ratio and proportion. For the markets fib-price-ratio measurements are
last twenty years, this has enabled my own consistent throughout the myriad of selection
quest to experiment, analyse and test several available, from quarterly, monthly, to intra-
thousand patterns for ratio and proportion hourly movements. But its imperative to
consistency and the results have been truly use log-scale for both the chart data and the
amazing! Ive documented most and more Fibonacci measuring tools.
importantly, used them real-time to trade for A real-time example in the use of Fib-Price-
myself and clients no better proof than to test Ratios (FPRs) can be seen in this forecast
it in the field of action. For what its worth, my published for the Dow Jones Industrial Average
assessment is that a concise and methodical (DJIA) dated January 2004 see (left-inset)
approach in applying ratio and proportion fig #2. It depicts a counter-trend expanding
analysis to the Elliott Wave Principle is no flat pattern unfolding from the Jan. 2000 high
longer just a figment of our imagination but a of 11750.30. It moves directionally lower
pragmatic reality. Its now possible to mould in the opposite direction to the prevailing
the results of measuring ratio and proportion uptrend and its composed of three main
to a form of tenet that can shape the future in price-swing, labelled a-b-c, down-up-down,
the way we use the EWP. and subdividing 3-3-5 as is necessary for this
There are no illusions though as much pattern. In this update, the first sequence as
as we might search for it, its not an exact wave a had already completed its decline into
science. I rather think of ratio and proportion the Oct.02 low at 7197.50 whilst unfolding
and pattern and form as the two sides of the into a double zig zag pattern. This establishes
same coin one cannot exist without the what I term as the initial price-extreme of
other neither is dependent, independent the expanding flat.
but co-exist in interdependency. Together The second sequence of the expanding flat
they increase the probability of correct is wave b and this must ultimately traverse
forecasting exponentially. Some do degrade above the extremity high of wave a before
and seemingly run short, but this is by far a completion ideally, into a zig zag or perhaps
minority, something a good strategy can take another double or triple pattern. But how far
care of. above wave a?
When the market began rising from the
Beyond Mathematical Probability Oct.02 low, we could see it recovering about
When a predetermined fib-price-ratio two-thirds of the preceding decline to an interim
measurement of a developing Elliott Wave high in early 2004. When extending this by a
pattern is tested and it combines with its fib. 61.8% ratio, it projected the Dow Jones
respective structural composition, then it (DJIA) towards 14150.00+/-. This converges
enhances the probability of completion and of with another fib-price-ratio measurement
course, directional change. Furthermore, the extending wave a (11750.30-7197.50) by a
closer price action reaches to those targets fib. 38.2% ratio projects towards this high at
then responds by staging price-rejection, 14169.80! And so, a convergence of this kind
the more confidence one has in identifying made a strong statement about the ongoing
directional price change. Theres no difference price development basis the dimensions
in analysing the different time-series of the and probability recurrence of ratios applicable

www.tradersworld.com Nov/Dec/Jan 2016 52


to this specific EW pattern, the 14169.80
level would be the most likely area for wave TradersWorld Magazine
bs completion. As we can see, this proved Premium Subscription
frighteningly accurate as the Dow Jones (DJIA)
Get everything we have for only $19.95 per year
formed a peak at 14198.10! see (right-
Save 50% over our regular subscription of $39.95
inset) fig #2.
Using the same FPR guidelines for
expanding flat patterns, the downside targets
for wave c are also plotted. Extending wave
a by a fib. 23.6% ratio projected wave c
downside targets to 6411.30. Dont forget,
this forecast was drawn in January 04 this
is not a retrospective analysis. The actual low
formed at 6470.00 in March 09, over 5-years
into the future! - see (right-inset) fig #2.
To see the Dow Jones (DJIA) adhere to QUARTERLY MAGAZINE SUBSCRIPTION
Read articles explaining classical trading
the Fibonacci guidelines of the expanding
techniques, such as W.D. Gann, Elliott Wave,
flat pattern so many years into the future is astro-trading as well as modern technical
quite a humbling experience. For steadfast analysis explaining indicators in eSignal,
practitioners of the EWP, am hoping this can NinjaTraders, MetaStock & Market Analyst.
distil everyones interest into the examination
COMPLETE BACK ISSUES OF TRADERS
of using Fibonacci-Price-Ratio analysis - it
WORLD Magazine (ISSUES 1-60)
should also dispel any doubters that such You also get our complete archive of 60 back
harmonic frequencies are part of the natural issues from 1986 to present. This, contains
development of financial markets. After all, articles, product reviews, hundreds of chart
examples, how-to-trade articles and much
ask any mathematician to calculate the odds
of creating a forecast of this amplitude and format, which you can read online anytime.
time-span and hell probably say its beyond In every issue, you get the information
mathematical probability. you need to trade the markets better with
charting, astro, cycles, oscillator tools.
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www.tradersworld.com Nov/Dec/Jan 2016 53


Traders Dilemma and Resolution
By Stan Ehrlich and Sumonto Ghosh

So you want to be a trader? Congratulations, you made yourself pull the trigger. Youre in!
Now what?

Hope for the best of course, because I wouldnt have made this trade unless I was going to
be right!
What? Its going the wrong way? Ok, minor price correction. It will turn around soon.

Later Well, if Im going to make any money on this trade I could add to the position and
average in so a small move in my favor would put me in the black. Its done. I Doubled up, or
worse.

What is a margin call?

How many times have you heard that story? Unfortunately, too many neophyte traders do
exactly that.
The correct way to trade is to plan out your trades in advance; there are only two outcomes, a
profit or a loss. A scratch trade, or break even trade, is a good trade.

First, lets consider loosing trades, failures, bad trades. You will need a stop loss order, and I
prefer to use the phrase protective stop because if filled, that type of order could be a loss or a
profit. When it is first placed, which is at the time you put the trade on, it will create a loss if not
moved in your favor, given the opportunity. By the way, mental stops do not work! So you have
to figure out, at what price, do you place the order? When do you place the order? Exactly what
kind of stop order (there are a few) do you place? How much risk are you taking? How much
money is that? What percent of your capitol are you using? Will I move the stop price under
good and/or bad circumstances? And you could come up with other relevant questions. All of
which and more, need to be thought out in advance.

Now lets talk about good trades, profitable trades. The successes, the ones that prove youre a
financial genius. Again, it is critical that you always think out your strategy in advance. Then get
into the trade and immediately placing orders which will protect you, as well as allow for profit
taking. Do not procrastinate. Document all of your thoughts, probably in a spreadsheet; reasons,
approaches, technical tools that you used, and anything which will help you in the future make
fewer mistakes, and therefore more profitable decisions over time. Now, leave your emotions
behind. Thats the hard part. Theoretically, walk away.

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When it comes to trading, You are your worst enemy, Ive said that many times. Its called
fear and greed. They are normal emotions and theyre totally wrong for traders! On top of that,
attempting to enter market positions near or at market turning points top and bottom picking
is very counter intuitive. It seems like the exact wrong thing to do at that moment. I often
use the phrase, bass-ackwards, to describe the thinking process that is needed to pick market
turning points with scary how did you do that? correct and accurate timing. Usually the trader
is not sure of the trade and waits, i.e. procrastinates, too long, and then trades right into a
correction which reverses prices, and that takes them by surprise.

So here we go, the trade is on, and our orders are placed. We sit back and wait. There are only
three things that can happen. The market goes up, down, or sideways. I think we can rule out
sideways because if it happens it doesnt last long and you are not making or losing any money.

Again, lets take the wrong road first. You bought a new long position. So down is bad. You have
your protective stop (i.e. stop loss), sell stop in place, and under normal market conditions
it should be filled at or about the price on the order, or a couple of ticks worse. If you get very
lucky, maybe youll get a better fill. Dont count on it. After all it is a stop market order right?
Not a stop limit which may not get filled at all! Know your orders and how to combine and
place them.

As the price moves the wrong way you start to get stomach problems. You start to think of what
can be done to make things better, whatever that means, and its usually a bad thing. This is
the beginning of the what if thinking process. NO, dont go there. You made a decision when
you put the trade on, what your parameters would be, and what, if anything, you will do under
various situations. So, stick with your game plan and do not change things midstream. Keep
your self-control. If you start to panic midstream, you did not plan things out well enough and
your emotions are starting to take over.

Ok, now prices have moved down to your stop loss, or protective stop and you are stopped
out. What went wrong? Suddenly your stomach feels better and you start regrouping for the next
trade. After all, you know what you are doing, right? And you should not expect all trades to be
profitable, just most of them.

Now: for the good stuff. I think the good trades are actually harder to manage. When you are
having success, greed sets in. You tend to procrastinate, and pat yourself on the back. Things
are great, and you are the worlds best trader, and ignore the trade because you have to go the
bathroom, or get a cold beer. When you come back What The H Happened? That great market
swing was a climatic price swing. In other words: a blow off, a very sharp move in your favor
which you didnt use to MOVE your protective trailing stop market order to lock1[1] in some
profit, which is now a stop profit order, not a stop loss order. Damn, prices reversed 50% of
1 [1]
lock implies that under normal market conditions you should be filled at or close to your designated
price.
www.tradersworld.com Nov/Dec/Jan 2016 55
my profits in minutes and I missed the turn, didnt see it coming. OK, its alright. The trend is
in my favor which will continue, right? So what if its coming back to my original entry price. It
will be OK! Well, now its a loss, and you gave away a very profitable trade at this point. Well
corrections do happen, and the trend, as I perceive it, is still in my favor. Where is my stop
loss order? Oh, I forgot to enter it, because things were going so well, I didnt need it. Now, at
want price, do I put my order? I think you know the end of the story. I hate letting profitable
trades turn into losers.

The Ehrlich Reversal (ER) trading strategies provide trading signals which are structured
for stocks, Futures, FX, and international markets. They have default inputs, but we allow
adjustments to inputs, to conform to short term trader style, or longer term investing
style. Because these signals are designed to trade market turning points they are ideal for
option trading. Our Smart Trailing Stop (STS), is adjustable to accommodate both, short or
long term traders. Larger inputs, will create fewer signals, but frequently reveal longer term
market turning points for investors. While smaller inputs will provide the active trader with
more trading signals and shorter term trades with less overnight exposure. The ER signals
themselves have been developed to catch significant, market tops and bottoms the day they
happen.
Chart #1 shows an ER1 entry the day of the signal. The ER3 entry happened the following day.
Both trades were offset at about the same time and price because inputs were similar but not
exactly the same. Chart #1

If there is a position on and a reversal signal occurs in the opposite direction, we reverse
positions. We even make adjustments for favorable and unfavorable opening gaps. Traders
and investors dont realize as a reversal is happening, that a profound market turn has just
happened until a lot of price movement and or time has passes. I hear, OMG I saw it, and
wondered if it was significant, but didnt do anything about it! all the time. Does that sound
like, Gee I missed the trade?

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There are only three things that will happen after a trade is entered.
1. A move in the wrong direction will cause our STS to take you out at a predefined, but
adjustable loss, which is part of the risk management process. We normally use a fraction of 1%
to maybe as much as 2% risk by default, depending on technical factors.
2. Prices may go sideways, which leads to no movement of our STS. So we wait.
3. Or, prices may move in your favor which provides a couple of possibilities.
a. Slow price moves in your favor could provide endless trending and our STS will
simply keep protecting more and more profit until the inevitable price correction occurs, and
the protective stop is filled with a nice profit. This slow trending is rare, but it happens. Our
strategy has patients, and most traders dont.
b. Or, prices may swing sharply in your favor at any time, which is typically indicative
of a market knee jerk reaction to something like unexpected news or large orders being filled.
As a result, a blow off, or exhaustion market swing often develops. In which case, the ER
automatically tightens your STS faster and faster to protect more profit. As a result, the STS
gets closer to the actual market turning point (which you will only realize after the fact) there by
locking2[2] in more profit very quickly. Chart #2 shows a trade which did not do much at first. Then
in a short period of time the money was made. Chart #2

This exit often happens in minutes. These sharp market swings often take traders and investors
by surprise, and the usual human reaction is to freeze up partially because you are making a
lot of money very fast. You get the feeling that the longer you wait, the more money you will
make. Wrong. Immediate and preplanned actions need to take place. Partially to keep the your
greed from taking over. And partially to objectively capture the market swing. Do you really
think, with several or more positions being effected in different ways, all at once, that you can
do that? Our software can, and does! Trust me after 44+ years in this industry, I have seen a lot!
Its the reason I developed the ER. Been there, done it.
2 [2]
locking implies that under normal market conditions you should be filled at or close to your desig-
nated price.

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Here is the sequence of events which the Ehrlich Reversal accomplishes:
1. We scan the universe of symbols (many thousands) using filters to find those symbols which
are about to provide our needed trading trigger. Thats right, before it happens. You are provided
the scanner. Those symbols are placed into individual chart analysis windows. And the automated
trading settings are turned on using preferably a Pattern Day Trader designated trading
account. Then we wait.
2. If the expected signal does not develop before the close, nothing happens.
3. If the signal does develop, which it usually does, we enter the trade automatically or you can
select a manual entry. Then our Protective Stop (STS - Smart Trailing Stop) is placed using our
default inputs, or using your personal input preferences. Your personal input preferences would
modestly change a couple factors, but not how the STS generally moves.
A.Some of our trades fail right away and our Protective Stop takes you out with the default
risk which is usually less than 1%, or using your personal risk preferences after you change an
input.
B.Other trades will start to move in your favor and the STS starts to take action moving with
favorable price action immediately beginning to reduce your risk. If our default profit amount
called, Protect Amount, has been reached, our STS immediately locks in your amount.
Or, once our default selected Protect Amount is reached, we lock in that amount. If prices
continue to move favorably, we begin to lock in more profit depending on price movement.
Chart #3 shows an ER3 trade in the Crude Oil futures. chart #3

Since a high percentage of signals provide some initial movement in your favor allowing your
initial Protect Amount to be reached, those trades provide a profit which covers costs, or better.
The idea is dont let a profitable trade turn into a loss. Other trades do better or much better
and eventually hit the STS. Chart #4 shows a short trade in the Forex EURUSD. Chart #4

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The ER Group, Stan Ehrlich and Sumonto Ghosh, provide TradeStation WorkSpace templates
to make using the Ehrlich Reversal suite of indicators and strategies easy. We provide
instructions at www.EhrlichReversal.com.

Because everybodys portfolio size is different as well as youre trading style, you may pick and
choose from those symbols on your Bull or Bear ER Signal Scanner lists. Each day, there should
be several, or many more symbols qualifying. On a very active day there may be many dozen,
we never know.

We wish you disciplined, profitable trading.

www.tradersworld.com Nov/Dec/Jan 2016 59


Easy Rythm
By Stan Moore

A special note of introduction from the Editor Larry Jacobs: For the past 18 months I have read
Stan's Daily intra day trading Alerts, seen his notations on the intra day charts that come out
with additional comments discussed in his chat room multiple times a day. I've read his weekly
Blogs, studied his trading videos and spent time in his Chat Room. I have his 3 books. He is a
trading insider from Wall Street like only a special few I have seen before. He is unique. He has
over 50 years of trading experience. There is very little he has not seen.He is a true student of
the game. I believe he is well worth the read below.

My Name is Stan "Ed" Moore & here's why I believe I can help your trading. I have spent over
25 of those years on Wall Street mostly managing a number of trading desks like Gabelli and I
even started my own Brokerage & Money Management firm later, Moore, Grossman & DeRose.
I have handled Billions of $'s over my career Trading & Managing $'s for Institutions & Wealthy
Individuals. I was the inside Partner.

I have spent substantial hard $'s learning & I also directed over $9 Mil in Commissions over
my career to learn from the best of the best on the Street. Cramer came 10 years after me &
bragged he gave away $20 Mil to learn the street's secrets. Very few of you will even begin to
approach that level of knowledge or intelligence I learned & probably Cramer too.We knew all
markets. We were true insiders back then.

I further doubt any of today's mentors served on the Boards of Public Companies like I have.
I doubt any of them ever put up a bid for a NYSE company like I did with Holly Sugar in 1986,
won seats on the Board & sold Holly to a Competitor and that move made $10's of Millions for
our clients. I was truly one of the earliest "Active Investors". I could have continued along those
lines but trading was my passion...and still is.

I wrote the first of my three trading books,"Rhythm Of The Markets", while I was Director of
Technical Research of a NYSE brokerage firm. It was endorsed by some of the biggest names out
there at the time.My second book, "Option Magic," is still a "Big Time" winning option trading
strategy,especially with every week being option expiration. The third "The Definitive Trading
Bible" contains everything you ever wanted to know about trading, but you did not know where
to find the answers.It holds the secrets to untold wealth for those traders wanting to learn most
of the insider secrets still not really known,let alone taught, by anyone else out there.

Lastly, only a true handful of mentors have done great things for traders like you. I have done it
all... I use Fibonacci to read price like I had a GPS on my desk every day. I wrote about this over
25 years ago,and I still think only a handful of traders know anything about it, even mentors
teaching Fibs for more than 40 years. There's a lot more. Please read on.

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I also have developed a "Magic Oscillator" (MO). I believe this really impressed your editor,Larry
Jacobs and I thought he wanted me to do an article on it awhile back. However,one article is not
enough. I now have many training videos that do a great job.

The MO Nails Tops & Bottoms of Trading ranges.It's "Magic." Did you not know all this time you
REALLY could predict tops & bottoms with uncanny accuracy? You know this greatly reduces risk,
I'm sure. Well welcome to my New Era world of trading.

Please don't get me started on what "Magic" it holds for trends as well. It can also become a
"Leading indicator". It has 5 different divergences. At worst, it's merely coincident. Yes you can
buy higher lows & sell higher highs all the way up & Vice Versa for declines.So it can let you
know when you start or end a trend as well as keep you in there to the very turn when that
trend ends. See Weekly chat below.

Or call & talk to me and I'll send you free the 40 pages on trend trading from my 3rd book. No
one else ever cracked this trading code so mechanically like I have. It's even better since I added
an indicator to pickup when the Algos are in there too.

Prior to 01/02/2015 we were in a multi year trend up trade on the weekly chart. Later on you
can see it work on different time frames equally well.

Starting in January on the Weekly S&P cash Index Chart below the MO showed and said top of
a Trading Range at every rally high. We had a 7-8 month huge trading range. The Daily chart
confirmed the Actual top July 20th with an overbought reading, not Jammed.(You can get the
definitions of both jammed, overbought or oversold).
There was an early warning on June 26th (See Daily chart below) with Oscillator signaling
"Leading Divergence". (This indication works over 80% of the Time alone on the Larger time
frames).See the Charts for even more tops & bottoms of recent ranges it nailed too.

Lastly it might surprise you that I do not use stops as you know it. I use time stops. I also
average into losing option trades to earn even larger profits than you can ever imagine.
However,these setups are a whole different subject, for another time.

www.tradersworld.com Nov/Dec/Jan 2016 61


Weekly Chart

Just what more can I tell how I do what I do. Just below is who I was nearly 10 years ago,as told
by a new student after seeing me in live action.
See a his comments. I hope I am at least 10 X's better today. Wait until you see all my recent
training videos.

I still find this hard to believe even today,just how hard It is to succeed in this game, especially
when most traders have no idea what they don't know about their game.
My problem was, I did not know how much I really knew. Once I started writing my third
book(which took over 2 years to write) I started to really understand what is was I knew and
could finally explain it to you. I heard many times in my career you only become good at
something when you write and/or teach the subject. Teaching you these last 25 years has made
me the trader and mentor I am today.

From Charlie C:

"I first met "Ed" at a "technicians conference" in Florida on January 20, 2006. I give you the
date because it was an incredible day in the markets. It's also how Ed made his first impression
on me, and many others as well.

The "trader" hosting the conference had billed this day as one during which he and Ed would
trade live expiration week OEX options. He calls these options "White Lightning." There were

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almost 200 of us waiting for this to happen. I don't think anyone ever attempted to trade
options, live, the last day of the expiration month.

There were endless data and computer glitches. Then suddenly everything was working, and
the S&P's had gapped 5 points higher. Ed explained it was expiration related only. But sadly,
our bullish host decided there would be no trading. He said it was no big deal anyway because
it would likely be a flat market from here. I was crushed. There was a groan in the crowd.
Indeed, it felt like most of us came to see Ed trade options real-time.

That morning there was also news about Iran, and it didn't sound good. The host explained we
don't trade news, that it didn't matter. Audience agreed. He then explained his method for a
few minutes . . .

Then he let Ed speak.

Ed stood up, and everything changed. In no uncertain terms, he reeled off the news about Iran,
why it was bad, what it meant for the markets, why it wasn't priced in to the markets, and what
would probably happen. This too he explained in no uncertain terms: the markets were priced
for perfection. Since it was options expiration, if the S&P were to break down from current
levels, it would break hard because the professionals would sell it to make sure all the in the
money (ITM)outstanding calls go out worthless. He gave a specific level, that if violated, would
send the market that day into a free-fall.

In front of 200 people that had just heard this would likely be a flat day, this was a lot of
interesting information.

I don't think he wanted to embarrass his host. He said if you put a gun to his head he would
buy puts. Then he outlined the "best" Risk/Reward trade for us to consider doing. Again, no
uncertainty. Sell 75 E-minis, go long 100 OEX at the money(ATM) calls. They were trading
at $1.50. If the market broke down, he'd likely earn $40-$50,000. If the market bounced, he
could make $5-$10,000. And if it stayed where it was for next 2 hours, he'd lose $5000. Given
the news, the latter wasn't even remotely possible.

Notice what's going on here: fundamentals, news, tactics, technicals, money management, risk
control, expectations. All in about 30 seconds. I now know, that's exactly how fast his mind
works.

There was a shift in the room. Everyone was stunned. Who is this guy? It was incredible.
Hands went up. Everyone wanted to know more. I wanted to know more! But our host only
wanted to talk more about his own methods.

The market started to break down.

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The host took another look at his charts and in a goofy way asked Ed if he wanted to buy calls.
You could tell he was half-serious. Ed took one look at his own charts and said: "No way. We're
going much lower."

January 20, 2006 -- the day the S&P closed down over 24 points from the opening high, in what
was "supposed" to be a flat market. The day you would have made almost $50,000 if you put
on the trade Ed suggested and held it into the close, over $80,000 if you did it at the opening.
If you bought $.40 out of the money(OTM) puts he recommended much earlier, they closed
over $9.00 or 20 X's your money. I thought "Wow, at the very least I could've made 10 X's my
total risk! I wanna start right now!" That was the day I became determined to earn my PhD. in
trading with Ed.

So . . . have I graduated yet? No. Not even close. Has it met my expectations? Ha -- it's
exceeded them by multiples. To trade any other way at this point would seem sophomoric.

Whether you want to be a swing trader, a day trader, or just a better trader, Ed's instruction
will help you succeed. Just one page out of his manual, a single page that took over 2 years to
write, is worth his fee alone. His custom oscillator, a mathematical blend of over 10 different
analysis techniques, is worth his fee alone. His daily instructional alerts and coaching (where else
can you tap 40+ years of experience)? Priceless.

More importantly, he sets up trades well ahead of time to help you earn money while you're
learning. "You can earn while you learn" is the way he puts it.

I've seen his methods ride trends, pocket seemingly endless points from boring range bound
days as well as wild, choppy volatility, all with equal aplomb. He tells when to go for the jugular
and when to stand aside. He doesn't try to impose his will upon the market. He lets the market
tell him what to do. Best of all, he teaches you how to do it too. It doesn't happen overnight.
But when it does amazing!!"
From Charlie C NH (Charlie C's Email address is available upon request.)

Now I spend a considerable amount of time taking as much of the risk out of trades so you can
learn to trade real size for the first time. Imagine what trading 50/100 E's would be worth to you
financially when you are now a 3-5 player.It doesn't happen overnight.

Above Charlie noted a hedged trade long Index calls & Short E's. If this trade was attempted
earlier you could have earned over $80,000. I'm trying to give you all the potential Profit of the
trade setup "with only a fraction of the risk if you are wrong". I am not wrong often.

Flash Forward: Recent comment about Aug 26 2015 wipe out day The man who made a billion
dollars on Black Monday sums up his strategy perfectly in this excellent FOX Business clip

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with the money-honey, "I'm a hedge fund manager that actually hedges for his clients. This
is something of an old fashioned idea in this day of just gambling on the next Fed bailout."
Spitznagel, who is wholly unapologetic in his criticism of The Fed (and any central planner),
unleashes eight minutes of awful truthfulness on what is going on under the surface of the so-
called 'market', concluding ominously, "if August was scary for people, they ain't seen nothin
yet."

What a great comment on NET Trading to lead in with.


We do not gamble on anything either.
We all should want to learn how to hedge & parlay to take almost all risk out of a trade at these
important news releases & maximize our potential profits too. Once setup we just need the
markets to move, the bigger the better. Again more information is available See charts down
below.

Then and only then do we attempt to take $'s out of both sides of the trade here. We have been
winners on both sides over 60% of the time. Furthermore, NET trading has not experienced any
losing trade setups in the Chat Room doing 13-15 of these news release trades a year since I
started teaching this methodology over 7 years ago. This is still only a fraction of what I teach
but by far the biggest profit generator of NET trading. Now below we have a perfect example.of
what I am talking about.

The recent week ending 10/02/15 we setup a trade long calls and short E's,going into the Friday
Jobs Number. We were long by the Thursday close multiples of 10 slightly ITM calls for $1.30 &
Short 2.5 E's for every 10 calls. Now See the 10/02/15 5 minute chart. Overnight the E's rally
even higher. Now see below my first Email alert Friday before Job numbers come out at 8:30 AM
EDT. My Copy's below

From: EASYRYHTHM@aol.com
To: easyryhthm@aol.com
Sent: 10/2/2015 8:16:21 A.M. Eastern Daylight Time
Subj: Alert Notes Take your Chances read below.Stan M

Fellow Friends,

Goldman forecasts non farm payroll growth of 215 k in September, above consensus
expectations of 200 k by about 0.3 standard deviations of a typical surprise. Noting that August
payrolls were likely distorted downward by seasonal bias last month and may be revised up,
Goldman expects the unemployment rate to remain flat at 5.1% (and earnings growth to slow).
However, judging by the collapse in September's regional Fed surveys I have read, today's
"most important" payrolls data ever could be a massive miss.

Going in for every 10 long Calls and because we are higher overnight I'm now short 4 E's(

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trading @ 1926). Normally I would be short only 2.5 E's Should be fun this morning.

Be alert a negative reaction to the employment data would still be expected to garner interest
from buyers toward 1903 and 1894. In fact, I'd be careful turning too bearish until price begins
to drop and hold below 1894 and Thursday's 1890 intra day low. I'm a buyer of calls or E's
starting at the 1903 area and scaling in.
From: EASYRYHTHM@aol.com Alert #2
To: easyryhthm@aol.com, alertemailstorage@neweratrader.com
Sent: 10/2/2015 8:59:40 A.M. Eastern Daylight Time
Subj: Alert Note Thank You GS. Stan M

At least we know why the E's rallied so much. Thanks GS. We went up against the Big Boys &
won again.

If you only owned 300 calls($40,000)after selling half late Thursday, You could have made nearly
$240,000 on the 120 E's you were short. Our OTM Calls now should open around $.50 Looking to
buy more under there.(They hit $.40 after the opening)

I couldn't have tipped you any better than in the first alert when I went to 10-4 after I saw the
new rally highs & thought possible soft number too.

Good Trading,
Stan

Well the E's Dropped over 40 points in the next 90 minutes. That's $2.000 profit per short E.
The Calls traded as low as $.40 If you added more calls as suggested under $.50 near the lower
lows, these closed at $5.00 by days end. Our $1.35 calls plus our new purchases under $.50
gave us a nearly 8+ times return!!!

If you added 1,000 more calls to your existing long position, you would be only risking 20%
of what you made on the short E's or you could have even used the profits from the sale of
half your calls on Thursday. See Chart 4 below. Either source of funds could have made over
$500.000. This is "parlaying" at a NET best.

Again, NET Trading Scores a huge hit with the short E's & comes back with an even bigger long
call win. NET scores on both sides again. Just think, over 90% of those trading "haven't a clue as
to how to trade news & constantly get beat up".So far we have won big every time. Not many do
this and if they do, they do not teach it.

See Friday's 5 minute Chart. We spent 90 minutes going down over 40 points & 6.5 hours going
up over 60 points.This is a NET Dream Trading Day. Just look at the Oscillator. It got Oversold
near opening and not Jammed. Then it spent most of the Day Jammed/44 telling us to just buy

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the E dips and/or add and hold all calls.

Chart 1 -> Daily (Below)

Chart 2 -> Friday 30 minutes (Below)

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Chart 3 -> 5 Minute Friday (Below)

Chart 4 -> 5 Minutes Thursday

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If you would like to see a training video explanation of Thursday and Friday trading. Click below:
https://vimeo.com/141278601

Looking back,I have tried to retire from mentoring a few times over the last 15 years, but they
keep sucking me back with new and better profit making opportunities than before. I will now die
trading in front of my screen. Once the Indexes went to trading weekly expirations 10 years ago,
we NET Traders died and went to trading heaven.
This is what NET really lives for every Friday..On some Fridays there are times when you can
control an E contract worth over $100.000 for as little as $10-$20. Think about this now.

Imagine long 1000 calls for $20,000 you are controlling $100,000,000 of equity that moves
today over 1%,or $1,000.000. You are short 300 Es that then decline 20 points and you are
$800,000 to $900,000 richer or vice versa long. So putting up only $35,000 lets you have your
cake & eat it too. 90% of the trades are legged to too mitigate any early losses.This trade serves
to reduce the option risk and maximize profits

In addition,theres a whole lot more in New Era that we do on a daily basis. To learn this go to
HTTP://neweratrader,com and sign in for free information and just maybe I will give you a free
30 days of alerts, blogs, or everything I write and chat about. Talk to me.Take your current
trading skills to levels you could only dream about. Make more money in a news trade during
one week than most traders can make in a couple of years See Thoughts above. You can do this
starting with less than $25,000 in capital.

In summary, How would you like to learn how to read the message of the market nearly every
day and be able to earn in only a week,a middle 6 figures with a minimum of risk and with
a modest amount of money,18 times a year just trading prior to key news announcements?
Realistically, early on expect to earn much less. However,just think more about the 2 years down
the road of what you could be earning then.

Hows about playing in the worlds biggest Casino & every time you sit down at the table the
odds are in your favor up to 90%? Try this in Vegas Baby and you will lose your "ASSets."That's
what NET is all about. We do not ever gamble anymore

If for any reason you feel this has been a waste of your time.... Pick up your phone and tell me. I
will send a $25 check to your favorite Charity. However, just on the chance you might like what I
have to say, call me too and let's see if and how I can help you make the money you deserve.
You will be amazed at how inexpensive my mentoring is & how much it can make for you.!! Call
Today!!

Thank you for your interest.


Good Trading
Stan "Ed"Moore

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HINDU TEA MERCHANTS CALCULATOR
Or W.D.Ganns Square of Nine
By D.K.Burton

As I have previously mentioned, Sepharial and Gann travelled to India in the late 1800s and
early 1900s. Sepharials teacher was Helena Petrovna Blavatsky (http://en.wikipedia.org/wiki/
Helena_Blavatsky). Blavatsky was responsible for bringing the spiritual concepts of Hinduism to
the west. She died on 8th May 1891 - just as the astrologer Sepharial predicted,

Ganns TTTTA (The Tunnel Through The Air) was written exactly 36 years and 1 day (9th May
1927) after her death (36 x 4 = 144). There are 36 decants to a circle.

A lot of the authors on Ganns reading list were members of Blavatskys Theosophy Society
founded in New York in November 1875. Blavatsky moved to India in 1880, it is likely that she
suggested Sepharial also travel to India.

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Sepharial wrote a book and many articles on Hindu Astrology. To understand Gann, you must
study Hindu Astrology. When I was in India about 10 years ago I took the square of nine
calculators with me. Hindo astrologers confirmed that it was an old astrology tea calculator.
Hence - you must have knowledge of Hindu astrology to use this calculator correctly.

The square of nine calculator most are familiar with, has March 21st (or East) on the left, with
the number1 in the middle and the number 2 to the left of 1.

Another chart - the square of four - has 1 in the middle and 2 to the right - so going in the
opposite direction. This is Ganns Master Price and Time Chart. Gann has each box going up in
12 points. For example, box 30 has 360 in it (30 x 12 = 360). This is the chart Gann used for
Cotton, Coffee, Cocoa, Wool and Grains.

Hindu astrology ingress charts start at April 14th each year due to the precession of the
Equinoxes. If you start at March 21st, 24 degrees must be deducted off each planet to equal the
Hindu system. Most people make the error of counting from this date as a seasonal pattern,

See the square of nine chart

The square of nine is broken into 16 parts of 22.5 degrees each, (16 x 22.5 = 360). Starting
at April 14th, the correct dates are May 7th, May 30th, June 23rd, July 16th, August 9th,
September 1st, September 24th, October 17th, November 9th, December 1st, December23rd
January 14th, February 5th, February 26th and March 21st. These dates are fixed each year. They
are close to the dates pictured on the chart above because 22.5 degrees is close to 24 degrees.
However, over time the dates will digress further and further apart (1 degree ever 71 years).
The western and eastern Zodiacs have not been the same since around 297AD

The number of each of the 22.5 degrees also adds up to nine. For example, 22.5 is 2+2+5 = 9,
45 is 4+5 =9 (1+2+3+4 +9 = 45 = 9), 67.5 is 6+7+5 = 18 which equals 9, and so forth -
get the picture?

I have printed out 16 Mundane Astrology charts showing the dates when the Sun ingresses into
these 22.5-degree points throughout the year.

I did a chart for Chicago. However, a separate chart would need to be done for each trading
centre. Using the square of nine chart for Wheat, its necessary to look first at Mercury as that is
a significator for grains, as well Virgo, which is ruled by Mercury.
This year Mercury is at 4 degrees Aries, therefore a change in trend would be on April 18th, 4
days or 4 degrees past April 14th.

For a change in trend you can use the fixed days above by adding 4 days to each of them. This

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gives the square of nine change of trend for Mercury when the Sun aspects the 22.5 degree
points.

If you have read TTTTA you would notice that Robert Gordon was born under the Astrological
bible sign of Issachar. Issachar is represented by Gemini and its governing planet Mercury. It
means price - and Robert would have to pay the price.

If you look at price, you would take 4 cents a bushel and keep adding 22.5 to give you the price
resistance and support levels. For example, 4 plus 22.5 = 26.5 etc.

Because the wheat price is above $3.60 and below $7.20 we start at 360 degrees. This gives
364, 386.5, 409, 431.5, 454, 476.5, 499, 521.5, 544, 566.5, 589, 611.5, 634, 656. 5,679 and
701.5 degrees However, these levels are only good for one year as Mercury will be in a different
place on April 14th 2016.

(I also discovered that planetary hours have lot to do with the planetary movments into their
own Naksahtras. Naksahtra being the term for lunar mansion in Hindu astrology For example,
Mercury moving into 106:40 degress, 226:40 degrees and 346:40 degrees and it happens to be
a Wednesday.. however, explanation of this must wait for another article.)

Before we go any further it is necessary to outine some history in regard to Wheat prices and

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also provide some information on the sort of charts Gann kept. Gann had wheat prices going
back to 1259 A.D, On his charts Gann marked all the Jupiter/Saturn conjunction and opposition
cycles (These are ten and twenty year cycles). His Great Mundane Chart contained all the Jupiter
out cycles from 1492 to years in advance way past his death in 1955.

His also kept charts on the production of commodities (bushels produced) with cycles marked on
them. This why he called himself an Economic Forecaster rather than a Financial Astrologer. He
knew how bad most Astrologers are.

March 13th 1848 and February 18th 1859 are two charts I know Gann had for the C.B.O.T.
However, he may also have used April 3rd 1848, which was when the forward cash contract
began trading.

Wheat futures did not start trading until 1877. Cash wheat first traded in 1841 This is the date
Gann started his Permanent Wheat chart table. Starting at 1842 the chart goes up in columns
of 12. For example, the top of column one is the year 1853. 1986 was 144 years (12 x 12) from
1842. This marked a big crash in commodities and wheat. Also 1842 was the year of the Great
Mutation Chart of the Jupiter/Saturn cycle. If we add 24 to 1986 we get to the low in 2010, the
next 12 years is 2022. Half of 12 is 6 years, which gives a low in 2016. A low in prices results
in farmers walking off the land as banks do a big land grab. The table enclosed is from 1842 to
2129 or 288 years, this should see you out.

Planet Constellation Year


Sun Krittika, U. phalguni, Uttarashada 6
Moon Rohini, Hasta, Shravana 10
Mars Mrigshira, Chitra, Dhanistha 7
Rahu rdra, Swati, Satbhisha 18
Jupiter Punarvasu, Vishakha, P. bhadrapada 16
Saturn Pushya, Anuradha, U. bhadrapada 19
Mercury Ashlesha, jyestha, Revati 17
Ketu Magha, Mool, Ashwin 7
Venus P. phalugni, Purva Ashada, Bharani 20

Below is a Wheat Production and Yield Chart from 1866 to present. This is like the chart Gann
would have drawn by hand.

Back to Financial Astrology and most are familiar with the twelve signs of the zodiac. As I said
above zero degrees starts on April 14th each year - so you have to know the bullish/bearish
planets and bullish/bearish signs as an over view. Break this down into Naksahtras (Lunar
Mansions) or 13 degrees 20 minutes and then into smaller Hindu degrees for short-term trading
which are called Dasas of 3 degrees 20 minutes. These also have Teji and Mandi readings as well.

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Bullish in Hindu is Teji and Bearish is Mandi.

Aries: - Teji
Taurus: - Teji
Gemini: - Mandi
Cancer: - Mandi
Leo: - Teji
Virgo: -Mandi
Libra: - Mandi
Scorpio: - Teji
Sagittarius: -Teji
Capricorn: -Teji
Aquarius: -Mandi
Pisces: -Mandi

Bullish and Bearish Planets: -

Sun: - Teji
Moon: - Mandi
Mars: -Teji
Mercury: -Mandi
Jupiter: -Mandi
Venus: - Teji
Saturn: -Teji
Rahu: -Teji
Uranus: -Teji
Neptune: -Mandi
Pluto: -Teji

Evidently, if you have the all the Mandi Planets in Mandi signs, the markets will fall. Visa versa,
if you have all the Teji Planets in Teji signs the markets will rise.

So what do we have for April 14th 2015? We have the Sun in Aries (Teji planet in Teji sign),
Moon in Capricorn (Mandi planet in Teji sign), Mars in Aries (Teji planet in Teji sign), Jupiter in
Cancer (Mandi planet in Mandi sign), Venus in Taurus (Teji planet in Teji sign), Saturn in Scorpio
(Teji planet in Teji sign), Rahu in Virgo (Teji planet in Mandi sign), Uranus in Pisces (Teji planet in
Mandi sign), Neptune in Aquarius (Mandi planet in Mandi sign), Pluto in Sagittarius (Teji planet in
Teji sign).

When the Sun goes into Aries, Mars becomes the Significatior; Mars is at 15 degrees Aries in its
own sign. When the Sun goes into Taurus, Venus becomes the Significatior etc.

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If we transit the 16th Harmonic chart (16 is number of planes on cover of TTTTA), which is also
the Square of Nine chart (16 x 22.5 degrees = 360) of Mars to Mercury, we get changes in trend
on April 30th, June 1st, August 7th, October 17th and January 1st 2016.

Remember this is based on the first chart of the year out of 16 charts. These charts are in parts
of three weeks. This is why Gann taught to use just the three-week swing chart. If you do not
have the same understanding of this as I do, the square of nine charts will make your head spin.
You need to study this over time (i.e. a life time).

Sepharial in his book suggested that you track all Mars out to Pluto conjunctions and oppositions.
These were important cycles. Gann had these cycles marked in his Ephemeris.

The fourth house in this chart has Venus opposite Saturn, which means farmers, will suffer with
lower prices and bad crops in the USA. Gann said when the price is in Scorpio it is bearish. This
is 240 to 210 plus the multiplies of 360 added to it - so below 600 it is bearish, Saturn is at 10
degrees Scorpio or 220 degrees - so being below 580 it is weak as well.

On the Square of Nine chart Mercury is at 4 degrees - the number 4 is on the Cardinal cross, so
the numbers above 4 are,15, 34, 61,96,139,190, 249 and 316. These give the degrees of 15
Aries, 4 Taurus, 1 Gemini, 6 Cancer, 19 Leo, 10 Libra, 9 Sagittarius and 16 Aquarius.

These dates are April 19th, April 30th, July 6th, July 23rd, August 16th, November 5th,
December 12th, and March 21st 2016.

The other first Chart of the year is the Hindu Lunar year. This starts with the New Moon on
March 20 2015. It also happens to be a Total Solar Eclipse and the Eclipse is in the second house
of money at 5 degrees

Pisces rules national revenue, taxation, banks, exchanges and trade. The eclipse is in a water
sign and will therefore bring excess rain, damage from floods, a high death rate with the labour
class likely to suffer. Eclipses like this do not give a good start to the year. The eclipse at 5
degrees Pisces is 335 degrees. This is square the ingress chart at 4 degrees Aries where Mercury
is located, and gives the date of October 17th which at 335 degrees, is opposite the zero degrees
ingress chart of April 14th 2015.

When you place the circular overlay at the 335 point it squares the price of 1280 - the all time
high of December wheat futures. The high date of March 13th in 2008 plus 2626 days (which is
the number of days square the high price and opposite the eclipse number of 335 on the square
of nine chart) is October 22nd 2015. Uranus was at 5 degrees Pisces on the 13th March 2008 and
the eclipse falls on this point at the high.

On the 17th October we happen to have Mars conjunct Jupiter at 19/20 Leo, which is 139

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degrees. This number squares 335 and lines up with 1280 on the square of nine chart. On this
ingress chart of the Sun on this date, the Mars/Jupiter conjunction is in the eighth house and
also opposite the second house of the eclipse, which controls death, death duties waste products,
fuel and chemicals.

Scorpio is the natural ruler of the eighth house and Saturn is there all year, Mars rules the eight
house. This indicated extreme bearishness in this period. 335 lines up with the price numbers of
412, 497, 590 etc. The lowest level December wheat has been since 2008 is 439. This is likely
to be broken and then head back to the 1999 lows of 230. The market is making lower tops and
lower bottoms; this is bearish also, (a basic Gann rule, which some people dont even get.)

On the day count the numbers are at: 7, 20, 41, 70, 107,152, 205, 266 and then 335. These
dates from the solar eclipse on March 20th 2015 are 107 days July 5th, 152 days August 19th,
205 days October 11th, 266 days December 11th and 335 days February 18th 2016.

The main ingress chart needed is the four at the cardinal cross, then the four at the fixed cross.
These are 90 degrees apart and 45 degrees apart. It is necessary to look at the 22.5-degree
ingress charts for the 3-week period you are studying as I explained above.

Because the Lunar New Year is in Pisces and the ascendant is Capricorn - the ruler being Saturn
for Chicago - look at the aspect to Saturn during the year. The Eclipse is in the second house.
This is the money house and Venus, which also rules grain prices, rules the second house. You
must also look at all the New Moon and Full Moon Lunations during the year as well.

If we just look at Mercury aspecting Jupiter (a bearish planet) in the New Year chart we get the
following dates: April 21st, June 27th, July 8th, July 15th, July 30th (which is most important),
August 16th, August 26th, September 10th, September 25th, October 23rd, November 10th,
November 29th, 9th December 9th, December 19th and February 24th 2016 (which is also very
important).

The Hindu year is 2072, which equals 2015 starting on 14th April. The rule for grain is 2072 years
x 2 = 4144 3 = 4141. Divide by 7 = 591.5, the remainder of 5 means it will be a happy year
for grain and the prices will fall.

2015 is the 29th year of the 60 year cycle, which is called Manmatha. The Hindus Yugas go back
millions of years. The last cycle started in 3102 B.C when Jupiter/Saturn conjunctions with other
cycles were close to zero Aries.

It is interesting to note that in TTTTA Gann said he made his greatest discovery on June 19th
1927. The last Jupiter/Saturn at closet to zero Aires was on June 19th 1821. The last one was
on 15 February 1941 at 16 degrees Aries. There were three - August 8th and October 20th 1940
due to retrograde motions. This could be what Gann was referring to in the title looking back

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from 1940, on the cover of TTTTA. You may know that human life span in Hindu tradition is 120
years. 1821 to 1941 is 120 years. The planets below add up to 120 years.

Constellation
Sun Krittika, U. phalguni, Uttarashada
Rohini, Hasta, Shravana
Mars Mrigshira, Chitra, Dhanistha
Ardra, Swati, Satbhisha
Punarvasu, Vishakha, P. bhadrapada
Pushya, Anuradha, U. bhadrapada
Ashlesha, jyestha, Revati
Ketu Magha, Mool, Ashwin
P. phalugni, Purva Ashada, Bharani

This year is likely to be both good and bad. People are likely to enjoy prosperity but with some
uncertainties. This years lord is Venus, this means there will be plenty of sugar, barley, wheat
etc. and prices will fall.

There is a danger of rains, natural calamities and earthquakes especially after September 2015.
Metals will also collapse which will push the $US higher and force the Euro to fall further.

The sixty Samvatsars are divided into three groups. The sak Samvat number is found by
deducting 135 from the current year of 2072, this equals 1937. Number 29, or in the 29th year,
you can find the basis for the start of the Jupiter cycle. 29 divided by 12 = 2.4, so you count the
fraction, which is four. Therefore it is the fourth month from Aquarius, which is Gemini.

Gemini is ruled by mercury, therefore Grains. Sepharial explored a similar idea in his book
Hebrew Astrology, in which the planets ruled for 36 years and 432 years - all numbers related
to 144.

The Hindu years 2016, 2017, 2018, 2019 and 2020 are all bad years for business. The sixty-
year cycle started in 1986, which was the crash in commodities. If you take multiplies back of
60 years from 1986 you get 666 a bible number signifying the year of the beast. This is 1260
years ago (also a bible number.) This is time, times and half time as referred to in he Book of
Daniel. Time being 360 is the average of the Sun and Moon together. Hence why there is 360
degrees to a circle (354.36 days + 365.25 days = 719.61 divide by 2 = 360). This also explains
the figure of man as depicted by Leonardo da Vinci, of 144 degrees 5 x 144 = 720.

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Refer also to the Time Cycle article wrote for Your Trading Edge magazine which explains the
coming depression.

The Square of Nine, number 9 stands for a Tuesday and Mars.

So the number nine is important. The numbers on the square of nine chart are 9,18, 27, 36, 45,
54, 63, 72, 81, 90, 99,108, 117, 126,135,144,153,162,171,180 etc.. My hand draw chart goes
to 6889. You can convert all these numbers to Hindu Astrological degrees, which are 9 Aries, 18
Aries, 27 Aries, 6 Taurus and so forth.

Mars is at these degrees, on May 12th at 6 degrees Taurus, May 25th at 15 degrees Taurus, June
7th at 24 degrees Taurus, June 21st at 3 degrees Gemini, July 4th at 12 degrees Gemini, and July
17th at 21 degrees Gemini. This is a very important date for this year as it is the square of 81 (9
x 9). The number 81 is on the 315-degree line, (see below.)

The 81-degree line also has the number 315 in line. 81 days from April 14th is July 4th. There is
nothing in the universe but mathematical points, as Gann would say.

The Square of Nine clock.

You would notice that around the Square of Nine are also hours of the day. Zero degrees is 6:00
AM. 22.5 degrees is 7:30 AM, 45 degrees is 9:00 AM, 67.5 degrees is 10:30 AM, 90 degrees
is 12:00 PM, 112.5 degrees is 1:30 PM, 135 degrees is 3:00 PM, 157.5 degrees is 4:30 PM,
180 degrees is 6:00 PM, 202.5 degrees is 7:30 PM, 225 degrees is 9:00 PM, 247.5 degrees is
10:30 PM, 270 degrees 12:00 AM, 292.5 degrees is 1:30 AM, 315 degrees is 3:00 AM and 337.5
degrees is 4:30 AM.

The only time you can use these times is when sunrise is at 6:00 am, which is April 14th and
October 17th each year. This is the time you would count from sunrise each day if you were going
to use the calculator for day trading. For example, on the first 22.5 of the suns ingress which is
the same as 7:30 AM or May 7th each year I would look at the chart for sunrise in Chicago that
day. Sunrise on that date is at 5:39 AM, this is 21 minutes short of 6:00 am, and so 7:30 AM
becomes 7:09 AM

(7:30 - 21 = 9) on May 7th. Wheat futures start trading at 8:30 AM, which is in between the
22.5 line and the 45-degree line. 8:30 AM minus 5:39 AM is 171 minutes, 171 minutes after
sunrise.

There are 1440 minutes in 24 hours or a day. This is not exact of course, but good enough for
this exercise. Every 22.5 degrees = 90 minutes (16 x 90 = 1440) or a square. So every 90
degrees you have covered 360 minutes or a circle - or on this calculator, from 6:00 AM to 12:00
PM.

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Midday is never at 12:00 PM on the 7th May. On that day it is at 12:47 PM. The Sun (Earth)
moves 1 degree every 4 minutes, so 171 minutes after sunrise is a degree angle of 42.75
degrees. This also equals 43 days, 43 days from April 14th is May 27th 2015. You would place the
circular overlay on the 43-degree, which is close enough to the 45-degree line, and then watch
the open price of wheat in relationship to this line. 171 minutes is on the same line as 531 which
is on the 315 degree angles. This is 90 degrees exactly from the May 7th. So if wheat opened
that day above 531 and fell more than 3 points below, it would collapse - at least temporary. No
long term forecast can be based on this only, as its hourly charting. However a good top is likely
to come by the May 11th 2015 and then keep falling all year to early October or later.

The 43-degree is 13 degrees Taurus, which is ruled by Venus, so this is the significatior for 8:30
AM. Venus is at 65 degrees or 5 degree Gemini on this day. 65 is opposite 171 minutes and
square May 7th. At 8:30 we have Gemini rising, and if we look at Mercury (the ruler of grain and
Gemini) it happens to be at 13 degrees Taurus - another line up.

This is how real time and price come together and why Gann took this chart into the pit for day
trading. This line could have longer-term effects, as grains and all commodities continue to keep
falling. The C.R.B index is to get to 180 or lower by the time the cycles finishes. As I said above,
many farmers will be forced off the land by the banks as they make their big land grabs, it is
part of the system of the rich and powerful.

THE HINDU NAKSAHTRAS OR LUNAR MANSIONS

There are 27 lunar Mansions of 13 degrees 20 minutes, 27 x 13:20 = 360 degrees. As you can
see below the degrees overlap normal astrology signs of 30 degrees each. Each 40-degrees
there is a pattern as well because
40 x 9 = 360. This is why the square of nine fits the Hindu system well.

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STAR STAR DEGREES Teji/
LORD Mandi
Asvini Ketu 0:00-13:20 Teji
Bharani Venus 13:20-26:40 Mandi
Kritika Sun 26:40-40:00 Teji
Rohini Moon 40:00-53:20 Mandi
Mrga Mars 53:20-66:40 Teji
Arda Rahu 66:40-80:00 Teji
Punarvasu Jupiter 80:00-93:20 Mandi
Pusya Saturn 93:20- Teji
106:40
Aslesha Mercury 106:40- Mandi
120:00
Magha Ketu 120:00- Teji
133:20
Purva Plalguni Venus 133:20- Mandi
146:40
Uttra Sun 146:40- Teji
Phahslguni 160:00
Hasta Moon 160:00- Mandi
173:20
Chitra Mars 173:20- Teji
186:40
Svati Rahu 186:40- Teji
200:00
Visakha Jupiter 200:00- Mandi
213:20
Anuradha Saturn 213:20- Teji
226:40
Jyestha Mercury 226:40- Mandi
240:00
Mula Ketu 240:00- Teji
253:20
Purvasadha Venus 253:20- Mandi
266:40
Uttrasadha Sun 266:40- Teji
280:00
Abhijit Moon 280:00- Mandi
293:20
Sravana Mars 293:20- Teji
306:40

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Satabhisaj Rahu 306:40- Teji
320:00
Purva Bhadra Jupiter 320:00- Mandi
333:20
Uttra Bhadra Saturn 333:20- Teji
346:40
Revati Mercury 346:40- Mandi
360:00

Different planets signs and lunar mansions rule each commodity. In the information above,
where I refer to 43 degrees of the circle, you will see that it is ruled by the Moon, which is
bearish (No.4). The Moon does not hit there until about May 18th 2015. In relation to the
information contained in this article, Mars also hits this point on May 18th 2015. As mentioned
above, Hindus broke the circle into even smaller degrees called Padas of 3 degrees and 20
seconds, of which there are 108. This is equal to the number of Gods Hindus worship, (108 x
3:20 equals 360.) There are four Padas to one Naksahtras.
THE THREE WEEK SWING CHART

Because three weeks is 22 to 23 days which is exactly the 22.5 degrees of a circle, (365.25 / 16
= 22.82 days), you can use the three week swing charts as a guide line as well. For most people
it is easier to simply use the three day-swing chart. Keep it simple.

To understand Gann fully you need to understand the Secret Order which Gann used. This
is what Sepharial called the Secret Progression. It took me twenty-five years to work this out
alone. I may be a little slow but this is why Gann said his secrets are not for sale. You will not
find this information on any website and my knowledge is not for sale.

This also why Ganns family did not receive his secrets - they did not do the work - especially
John Gann who worked with his father for a while. There is no such thing as Gann made easy -
although this is what people would have you believe. Gann is not easy and simple his processes
are complex and hard, otherwise every Strawman could do it (http://www.yourstrawman.com),
https://www.youtube.com/watch?v=ME7K6P7hlko.

Do your own research, no website is going to help you. If you are serious about studying Gann
you must read all Sepharials books, plus the other publications on Ganns reading list . This is
just a start. Most astrologers (who I call housewife astrologers) cannot afford one of Sepharials
books; let alone the 30 or so.

Across the world, most people teaching Gann are only covering a small fraction of his knowledge.
This includes me.

Article written 6th April 2015 by David Burton dkb8@bigpond.com

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Key Ingredients for your
Trading Success
By Thomas Barmann of NeverLossTrading

Pick up your recipe for trading success: Financial decisions can be


mathematically appraised; however, most traders make emotional
decisions for entering and exiting their trades.

Take the chance and experience how you can focus on trade situations with a higher probable
outcome; how you can decide for your trades based on numbers, using simple math; how you
can put together clearly defined trading plans; how you can manage risk and position sizing.

A) Activity-Based Trading

The financial markets (stock market, commodities, currencies, and treasuries) are highly
efficient and allow an immediate exchange of assets when the buy- and sell price offered do
match:

You want to buy 10 units of asset-A for $100; if 10-units of asset-A are offered for $100, your
order is immediately filled and you are the proud owner of asset-A, paying $1,000.

Let us go into the real world, picking a snap shot on crude oil futures, where we feel like buying
100-contracts. What is the price we need to offer for getting our order immediately filled?

To answer this question, we need to understand how the exchange for crude oil futures works:
We pick /CL: Light Sweet Crude Oil Futures, traded at the CME (Chicago Mercantile Exchange).
Taking a snap-shot of the actual offering, we see the following:

Bid: $47.37 x 3; Ask: $47.38 x 4, +$0.51, +1.09% (the price for the crude oil future since
yesterdays close increased by $0.51, which is a 1.09% price increase).

So, you can immediately buy four contracts, when you offer $47.38; however, what would we
need to pay for the remaining 96-contracts, if you wanted your order to be filled right now?

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Table-1: Level-II Information on /CL Crude Oil Futures
Ex Bid Bid Size Ex Ask Ask Size Ask Sum Price x Size
0 $ 47.37 3 3 $ 47.38 4 4 $ 189.52
2 $ 47.36 8 5 $ 47.39 19 23 $ 900.41
6 $ 47.35 21 7 $ 47.40 10 33 $ 474.00
5 $ 47.34 32 2 $ 47.41 14 47 $ 663.74
9 $ 47.33 7 8 $ 47.42 8 55 $ 379.36
8 $ 47.32 7 4 $ 47.43 8 63 $ 379.44
1 $ 47.31 9 1 $ 47.44 7 70 $ 332.08
3 $ 47.30 15 9 $ 47.45 9 79 $ 427.05
7 $ 47.29 10 6 $ 47.46 14 93 $ 664.44
4 $ 47.28 9 0 $ 47.47 7 100 $ 332.29

Av. Price $ 47.42

Your 100-contract market order for immediate fill would achieve an average price of $47.42,
consuming the entire offering (Ask Size). If other market participants had a demand for crude oil
futures as well, prices would immediately rise above and beyond the last offer of $47.47.
You might say: Which private investor buys 100-crude oil contracts?

This is for sure a good statement; however, a 100-contract-order is nothing for institutional
investors, who dominate more than 90% of the crude oil futures exchanged: Approximately
300,000 contracts per day.

Thus, if you were able to constantly follow Level-II price information, tracking and tracing the
happening, you would be able to spot and follow changes in supply and demand. Trying to follow
Level-II price change with your own eyes is like going back to the times where traders read price
changes off the tape; however, with the help of an activity-based trading system, we can help
you to spot and follow institutional price changes, real-time and right on your charts:

Graphic-1: Ticker Tape and NeverLossTrading Top-Line 4-hour Crude Oil Futures

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With the help of vector graphics, changes in supply and demand can be portrayed on the chart,
where potential buy- and sell thresholds are calculated by an activity-based trading system,
indicating: if the price level of $45.81 is surpassed, additional demand is assumed; driving the
price to at least the dot on the chart: $46.71. When the dot-price-level is reached, we assume
that institutional investors will adjust inventories and prices will either retrace or revert.
By that, you know from the get go: Entry- and exit prices for your trade, with a stop at
specifically defined price points of the trade initiation candle.

Key to success: You only trade when the Odds > 1.5 in your favor, calculated as follows:

Odds = (Probability for Success x Reward) / (Probability of Failing x Risk)

Trade Situation-1 on the Chart: (0.75 x 0.9) / (0.25 x 0.8) = 3.0; odds in your favor.

Please check the chart again to notice how at every instance, when the prices reached or
surpassed the dot-price-level, a retracement or reversal took place: Again, this price behavior
is a result of institutional investors shorting or floating supply and thus bettering their inventory
positions. From now on, you can follow these repetitive patterns by using an activity-based
trading system, which helps you to spot changes in supply or demand right from your charts.
In many cases, private investors tend to trade futures in much shorter time frames. Does an
activity-based trading system work there, too?

Let us take a snap shot on a 2-minute chart for crude oil futures:

Graphic-2: TradeColors.com 2-Minute Crude Oil Futures Chart

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With TradeColors.com, we initiate a trade when a price continuation pattern of two-same-color
candles is painted on the chart. On a very short time frame, like the 2-minute chart, we get
additional orientation points by our trade channel indicator, which helps us to trade channel-
border to channel-border, and breakouts. After prices break out of the trade-channel, you favor
two-same-color-candle setups in the direction of the breakout, neglecting opposite price moves.
Following this concept, the above chart shows five confirmed directional price moves, with
predefined entries, exits, and stops:

- The exit price is pre-calculated by a price move approximation.


- We leave the trade after five candles, assuming a retracement or reversal.

Again, an activity-based trading system gives you a clearly defined trading plan by portraying
institutional price action on the chart that you can spot and follow: The crowd follows the
leaders, producing a Level-II price change and you are in the position to follow new price
trends and you exit before they end.

What is your take away so far? Activity-based trading systems produce high probability trade
setups, while you only trade when the odds are in your favor, gauging the maximum risk you
can take in a trade.

Are there more ingredients for successful trading?

B) Trade with a Trading- NOT a Gambling Mindset

With a gambling mentality, you would start to risk more when trades do not work, aiming to
quickly make up your losses; however, with a trading mindset, you apply strict rules based on
your chart setups and odds appraisal; calm, calculated, and repetitive, never cutting winners
short and never letting losers rise.

The odds appraisal depends on the strength of your trading system. Commonly, moving
average-based systems (MACD, Bollinger Band, Stochastic..) have an attainment rate of about
55%; high probability-trading starts at a 65% attainment rate and very strong systems produce
above 75% winners; however, the winning percentage alone does not guarantee trading success.
For bringing a directional trade to target, while the price moves in your desired direction, you
need to give your trades an adequate wiggle room, which defines the relation of risk to reward
in a trade.

Based on our statistics, we experienced the following risk/reward-distribution at trade-setups to


bring the trade to target:

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Graphic-3: Likelihood of Reward/Risk-Constellations at Trade Setup

By the graphic-3, you will have a 10% probability to spot reward/risk setups that have 2-times
the reward to risk or $0.5 risk on an expected $1 reward; however, in 35% of the cases, you
need to give the price a >1.2-times-reward-wiggle-room to come to target; 40% of the time,
you find a 1:1 reward/risk relationship, giving you only in 25% of the cases situations where the
reward is higher than your risk.

Key question: How do you find such setups?

Surely, you can go through hundreds of charts; however, you can also use an alert service,
which is helping you to find the specific chart setups you are looking for:

Check out NLT Alerts and click here for a special offerclick.

In the next step, we pair the reward/risk-distribution with the odds calculation for a 55%-, 65%-
, and 75% attainment-rate/probability trading system.

Graphic-4: Approximated Odds Distribution by System Probability

Graphic-4 shows: When using a system with a 55% probability to spot the right direction, in
75% of the trade setups you find, the odds will not be in your favor: Odds-Ratio < 1.5.
This relation drastically changes, when you are using a 65%-probability system, where 80% of

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the trade setups you might find will produce acceptable and sound trade returns.

When you are able to trade at a 75% attainment rate, you can really stacker the odds in your
favor by finding 55% trade setups with odds ratios above 2.

We hope, you see the value of what is shared here: In case you remain with a low probability
system (back test it over 100-trades based on clearly set rules), please be aware how you
drastically reduce your productivity rate: returns produced over time.

When we assume the same amount of signals per observed time-unit, and calculate for the three
systems the productivity rate by relating the participation rate with the odds ratio and probability
for success, we come to the following results:

Table-2: Trading Systems Compared by a Productivity Measure

Productivity (100 Signals) 55%-System 65%-System 75%-System


Signal Participation Rate 25% 75% 80%
Odds >1.5 and <1.9 3.19 15.50 14.06
Odds >1.9 and <2.9 2.58 10.56 17.63
odds > 2.9 3.25 4.75 15.63
Productivity Factor 9.01 30.81 47.31
Relation to 55% base 100% 342% 525%
Relation to 65% base -71% 154%

The calculations of table-2 show:

When you are using a higher probability trading system, your productivity rate is 3.4-times
higher when moving from a 55%-system to a 65%-system and 5.25-times higher when moving
to a 75%-system. A 75%-system produces a 54% higher return than a 65%-system.

If you want to experience, how activity-based, high probability trading systems work live,
schedule your personal consulting hour:

Call +1 866 455 4520 or contact@NeverLossTrading.com

C) Money Management

As the next ingredient, we bring money management into your daily routine: Trading is all
about risk containment and risk acceptance. Even so we might make a sound estimation of how
the future price-move shall be, what you have the most control over is the risk you accept in
every trade. In respect to risk containment, day traders have an advantage over swing traders
and long-term investors. As long as day traders do not hold position over major economic
news announcement, their stop is their stop and no additional risk is taken. Swing traders and

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long-term investors carry an overnight risk, where the price of an asset might gap beyond the
expected stop price, exposing the trade to a higher than anticipated risk; however, this is not
happening every day and can also be in favor of the trader.

Instead of taking a consecutive dollar-risk per trade, we are rather friends of a dynamic
percentage risk.

Let us calculate with a $10,000 account. As a trader, your risk appetite should be between 1%
and 5% per trade: In this case $100 to $500.

Every gain or loss shall dynamically adjust your investment volume, when you are using a
percentage-risk model: Had you gained $1,000, our risk tolerance would be $110 to $550. This
way, you are starting to compound interest and you dynamically increase your gains. In case of
losing $1,000 the risk tolerance per trade is $90 to $450.

Your salt in the soup, you can even use further dynamics by differentiating your risk appetite by
the odds appraisal. To demonstrate what this means, let us take an example of two traders:
Trader-1 takes a constant 3% risk and trades with clearly defined entries and exits.

Trader-2 follows the same concept and accepts an average risk of 3%, adjusted by the odds
appraisal of every chart situation and the probability of the trading system in use.

Table-3: Dynamic Risk Adjustment Based on Odds


Odds Ratio Trader-2 Risk @ 65% Risk @ 75% Return Approximation Trader-1 @ 65% Trader-2 @ 65% Trader-1 @ 75% Trader-2 @ 75%
Odds <1.5 0% 0% Odds < 1.5 0 0 0 0
Odds >1.5 and <1.9 2.5% 2.0% Odds >1.5 and <1.9 3,600 3,000 3,750 2,500
Odds >1.9 and <2.9 3.0% 3.0% Odds >1.9 and <2.9 4,688 4,688 7,875 7,875
odds > 2.9 6.0% 4.0% odds > 2.9 2,850 5,700 9,375 12,500
Average 3.0% 3.0% Retun 11,138 13,388 21,000 22,875

At a 65%-system, Trader-2 differentiates by the appraised odds and risks between 2.5% and 6%
of his capital per trade, averaging a 3% risk. When using a 75%-system, the risk distribution is
between 2% and 4% per trade, producing an average 3% risk.

The right hand table shows that the dynamically adjusting trader: Trader-2 produces in both
models a higher potential return: +20% when using a 65% system and +9% when using a 75%
system.

Summary:
- Activity-based trading systems produce higher attainment rates by following institutional
money moves.
- Trade with clearly defined entries, exits, and stops, allowing you to appraise every trade
situation.
- Only trade with Odds >1.5; calculated by appraising every trade situation based on (past

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probability for success x reward) / (probability of losing x risk).
- Increase your return rate by dynamically adjusting your percentage trade-risk based on
appraising the odds per trade situation.

With what we shared, we hope that you can increase your odds of winning. Speaking in baseball
terms: You can now calculate, if a trade setup allows you to move from base-to-base or if you
found a setup where you can hit for the fences.

If you like to use a readymade system, which includes all of what was shown here, including a
one-on-one teaching, where we focus on your wants and needs, check the following examples:

D) Readymade System Examples

In all our NeverLossTrading systems and in TradeColors.com, position sizing models are included
to quickly appraise trade situations. In our latest edition: NLT Trend Catching, we even added a
bar-by-bar trade appraisal in consideration of the expected 1-SPU move (SPU = Speed Unit) and
a stop at the red-horizontal-line drawn on the chart.

Graph-5: NeverLossTrading Speed Unit Definition

Every NLT Trend Catching chart has a SPU-meter on the top-left of the chart, indicating the
expected dollar-move and the percentage-move based on the asset price.

Our trading systems work for all asset classes. To continue with what we had shown before,
please see the below crude oil futures chart:

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Graph-6: Crude Oil Futures Weekly Chart (magnified buy-/sell indications)

From the Speedometer bar, we read the following: SPU = $4.18, meaning that the system
calculates an expected price move of $4.18 for crude oil, which would represent a 9.2% price
move. By the trend information being in red, it tells you that crude oil is in an overall down
trend, while it is currently at candle #6 of an up-move with a favorable trade setup, where the
reward is $1.1 to $1 of risk. Without calculating, you read all of what you learned prior from the
top bar off your chart.

In case that a weekly risk of about $4,000 per crude oil futures contract does not fit your risk
tolerance, we can show you how you can still participate in such price moves by considering
related, but different assets, reducing your risk per unit all the way to $50 and you still can
participate in the price move of the commodity, currency or treasury.

Please always consider, we tune all our systems to your wants and needs and today can provide
you with a special offer if you like to sign up for NeverLossTrading Trend Catchingclick and
mention code TWI61 (expires December 15, 2015) to receive your special discount.

In case, you want to start trading with our introductory product: TradeColors.com, you are
always welcome to upgrade later, getting every dollar you spent on tuition for TradeColors.com
acknowledged on the upgrade.

Teaching one-on-one, you are always receiving an executive service at your best available time
and for the assets you are interested to trade or invest in:

If you like to trade stocks, why would you learn about trading live cattle futures; however, if this
is your interest, we tune our sessions accordingly.

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Each of your trading sessions is recorded, so you can go through all you learned like a
professional athlete, training one-on-one until the learned sits and gets perfected.
We follow this principle for all NLT offersclick.

Let us pick an NLT Top-Line stock trading example, where at special setups; we focus on 2-SPU
price-moves:
Graph-7: NeverLossTrading Top-Line Chart for NFLX (magnified buy-/sell indications)

The 4-Hour NFLX chart shows a SPU measure at the current bar of $3.5, which indicates a
potential return on cash of $3.3%.

You see three buy signals that were confirmed by the next candle surpassing the set price
threshold and we closed the trade either when a 2-SPU price move was concluded or at the 5th
candle, including the trade-initiation-candle.

- Buy> 92.59 was exited at a 2-SPU price move of $3.40 (3.7%-return in one day).
- Buy>95.26 was exited at the 2-SPU goal with profit $4.40 (4.6% in two days).
- Sell<93.57 was exited at candle #5 with a small profit of $0.80 (0.9% in two days).
- Buy>95.19 was exited at the 2-SPU goal with profit of $3.13 (3.3% in two days).

In the above chart, in three out of four trade situations, the rule-based trader was better on,
taking a positive exit at a pre-defined candle-sequence or at a 2-SPU price move: so, in 75% of
the cases you were better on, holding yourself accountable for following clearly defined rules:
make them part of your trading.

Call: +1 866 455 4520 or contact@NeverLossTrading.com

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In support of your trading or investing:
Thomas Barmann
NeverLossTrading
A Division of Nobel Living, LLC
401 E. Las Olas Blvd. Suite 1400
Fort Lauderdale, FL 33301

Disclaimer
This publication is designed to provide accurate and authoritative information in regard to the
subject matter covered. It is sold with the understanding that the publisher is not engaged in
rendering legal, financial advice, accounting, or other professional service. If legal advice or
other expert assistance is required, the services of a competent professional person should be
sought.

Following the rules of the SEC (Security Exchange Commission), we advise all readers that it
should not be assumed that present or future performance of applying NeverLossTrading (a
division of Nobel Living, LLC) would be profitable or equal the performance of our examples.
The reader should recognize that the risk of trading securities, stocks, options, futures can be
substantial. Customers must consider all relevant risk factors, including their own personal
financial situation before trading. In our teaching of NeverLossTrading, in our books, newsletters,
webinars and our involvement in the Investment Clubs, neither NOBEL Living, LLC, the parent
company of NeverLossTrading, nor any of the speakers, staff or members act as stockbrokers,
broker dealers, or registered investment advisers. We worked out trading concepts we use on a
daily basis and share them through education with our readers, members and clients.

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www.tradersworld.com Nov/Dec/Jan 2016 93
TARGET FILLED
By Al McWhirr
www.eminiscalp.com

The waves crashing on the beach, the sound of a crackling fire, the birds chirping on a nice
sunny morning. All are beautiful sounds. I would just like to add another to the list. Target
Filled. This sound just fills me with joy.

Hopefully, in this article, I will be able to give the reader some insight on how they can enjoy
hearing the same sound.

Just over a year ago I wrote an article for TradersWorld magazine regarding our EminiScalp
ABL Auto Trade. The information on our website at www.eminiscalp.com, along with the article
as well as previous webinars, resulted in a response by an overwhelming number of eager
traders who were searching for some tidbit of information that could finally put them on the
profitable side of trading.

This current article will briefly review the EminiScalp ABL Auto Trade as well as offer an
example of a simple trading method, a method that has never been tested or traded, to the
best of my knowledge, but referred to only for the sole purpose of illustrating an uncomplicated
approach to trading.

The EminiScalp ABL Auto Trade is designed to look for entries at the extreme areas, the
current high and low. In many markets, the high and low are certainly target areas and new
highs and lows are usually created throughout the trading day.

Many times a trader will watch price move up and assume that price cant go any higher. They
may take a short just because they feel that the move is exhausted. To their dismay, price
continues to rise and the trader gets stopped. This same scenario can also happen when price
moves to the low of the day. Our EminiScalp ABL AutoTrade Strategy is designed to assess a
variety of trading factors when price reaches these areas. When conditions permit, a trade signal
appears. If set for autotrade, the trader is automatically entered into the trade.

A trader has the option of turning the autotrade off. When this happens, the signals will still
appear, but there will be no auto trade entries. The trader has the option of taking these signals
manually if he or she so desires.

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There are those traders who are not able to determine important trade areas. Even if a trader
was able to determine these trade areas, the question many have would be where the entries
are. In regard to either the current high or current low of the day, where price seems to be
attracted to throughout the session, our EMINISCALP ABL Auto Trade can certainly assist the
trader in determining where the entries should be. In most cases, there are enough potential
trades during the day to satisfy most traders. Of course, as with all methods, not all entries will
be successful.

An arrow will appear on the bar or candle in which the trade is entered. Once in an ABL trade,
there will be no other ABL entries until the current trade is completed, even if another entry
arrow appears. The trader has the choice of closing the trade right from the screen if he or she
wishes to exit before their trade strategy completes the trade.

What is nice about the EminiScalp ABL is that the trader does not have to know all of the ins
and outs of the instrument he or she is trading. There is no need to review economic numbers,
unemployment data, FOMC, oil inventories, etc. There is no need to check any overnight action
or review Market Profile, or to look at support and resistance levels.

What do you find to be the most difficult aspect of trading? Taking the entry? Staying with your
plan? Exiting a trade early because of emotion? Possibly not knowing where to enter? In talking
with traders over the past years, I find that trading issues encompass a lot of areas.
There are those traders who believe the market is random. Anyone who attempts to trade a random
market is just gambling. As such, it is my belief that the market moves systematically and logically.
Traders may not trade the markets logically, but that does not mean that there is no logic in the market
movement.

If a trader is truly dedicated and has the ability to follow rules and to stay focused, success can certainly
be achieved. There are a variety of ways to read a chart and if the chart is read consistently the same
way, positive results could be achieved. My hypothetical method that I am going to talk about may seem
simplistic, but it is an absolute starting point for those who need a place to begin. What I am going to
introduce may, or may not be profitable, as it is just an example, but if followed, it can be a way to learn
discipline and rule following.

Firstly, let me state that there are trade areas all over the chart. There are trades to be taken
near the high, trades to be taken near the low and trades to be taken at places in between. Of
course, knowing where these areas are is what trading is all about. Even though you may have a
setup at a specific area, it does not necessarily mean that there is a trade event. It all depends
upon where the targets are. If you have tight stops, determining target areas is very important.
Just like traveling, you have a beginning point and a destination. You wouldnt travel south to go
north. You would look for roads and highway access that would point you in the correct direction.

There are times when price may approach the high or low of the day. Any action that requires

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an entry may be difficult if the entry is manual. Taking an ABL auto entry enables the trader to
quickly enter the trade.

Many traders do not have a plan and if they do, it may be too difficult to follow and to adhere to.
So, I am going to throw something out here, what I call a beginners plan. Now, this plan may or
may not be profitable due to a number of variables, which I will attempt to explain. The purpose
of this simple trading plan is not to be profitable, although it certainly could be, but to encourage
focus and discipline, as well as to assist a trader in observing market action within certain trade
areas.

Here is how we begin;

If you took the difference between the current high and low of a particular instrument, and
divided this number by 2, then you draw a horizontal line at this point, and you decided that
you would take a long trade if the price was at least 1 tick above the line, and only if the price
crossed this line from below. If your target was set at 3 ticks and your stop was set at whatever,
and you decided that this was going to be your trading method, then you know what? You have
a plan. Now, you would need to stick to it and trade this plan only. If, down the road, you choose
to add a moving average or a bollinger band, then you are altering your plan and you are not
staying with it. If this method you have devised looks as though it is working for you, then there
would be no need to change anything.

1. Select your market


2. Determine the current high and low. You can visually do this by adding the CurrentDayOHL
from the NinjaTrader Indicators. The high and low will be shown and will be updated as needed
throughout the trading day.
3. Determine the exact number between the high and low
4. Draw a horizontal line at this point. We will call this our trading line(TL).
5. You now have a point to trade from, either for going long or short.

Now, you set your rules:

If the price is below the TR and is moving up to it, then plan on a long, only if the following
takes place. The price must move above the TL and when the first bar closes ABOVE the TL, then
prepare for an entry on the close on the very next bar, as long as the close is above the TL. The
same trading entry takes place for going short. As you develop this simple method, you may
want to tweak it a bit, but try and refrain from adding indicators. You want a clean chart whereas
you trade the price, not an indicator.

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Now, I realize this is very simplistic and that there are a number of variables that may need
to be considered. There are other conditions to be considered when creating a trade method,
but this is a starting point and SIM trading this simple method just may expose some trading
opportunities that a trader may never have noticed. I certainly would consider a tick chart,
possibly 144 or a bit higher. There may be a lot going on within a 1 minute, 3 minute or 5
minute bar, activity that you may be unaware of. As such, a 1,3, or 5 minute bar may close to
far from your TL, thus not allowing you to enter at the sweet spot, eliminating possible profit.

Lets move forward and set up your trade management. I realize that traders want to squeeze
as much profit from a trade as possible, but without a very good knowledge of how to determine
target areas, this may not be a reality. As much as one would like to get 3 points on a trade, this
just may not happen for a good many trades. A number of years ago I had a trader who came
on board who had purchased a method about one year prior to him contacting me. He explained
that he purchased the previous method because it boasted 2 point targets with 5 tick stops.
In essence, this meant that every time he entered a trade as per the rules of the method, he
expected to realize 2 points. Well, according to him, he was cleaned out within a few months.
I asked him if he had adjusted his target to say 1 point or even 5 ticks, could there have been
a possibility that he would have had more profitable trades. Absolutely, he said, but he was
just following the rules. Rules need to be appropriate for the method. Amending the rules to fit
the method was all that may have been needed in order to make the method profitable. Target
areas vary with every entry and without the knowledge of how to determine target areas, a
trader is certainly at a loss. The way I see it, is if you are not adept in determining target areas,
and if you still insist on trading, it may be a good idea to take smaller and quick profits, and just
do this more times throughout the day.

If you have deep pockets and your emotions do not interfere with your trading, then larger
stops can be considered. But, this scenario is not the norm for most traders. Also, you really do

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not have to be a market guru. The goal is profit, and creating an environment whereas you are
overloaded with market data can cause stress and hesitation. Keep your trading simple.

So, let us return to our simplistic method for some variations on trade management. For this
example, let us select the CL as the market we want to trade. We have our TL on the chart and
we have determined that we want 10 ticks as a target and 6 ticks as a stop. Over a period of 10
trades, we have losses in 9 of them. OOPS!!!, this method is no good. Hey, not so fast. Let us
examine all of these trades to see what had transpired. As you look at all of these trades, you
realize something. Nine out of the ten trades moved at least 5 ticks before the price reversed.
Over a period of a few weeks, you have noticed that this particular scenario is consistent and
that it seems that you can realize a 4 tick profit a high percentage of the time. Actually, this is
not a bad method then. If you had let your frustration overwhelm you early on when you had a
10 point target, this method would have founds its way into the trash barrel.

In my humble opinion, reducing the overload is key to success. I realize that there are traders
who review overnight price action, looks at market profile, review all of the news related to the
particular market, reviews a variety of charts, etc. The list goes on. I am not saying that all of
this information is not pertinent, as it may be for a particular trader. But, if your time is limited
due to a job and family obligations, it may be better to just trade what you see because I believe
that all you have to know is right there on the chart.

Below I have added screen shots of the CL, from this past Columbus Day. Of course, the ABL
does fine with most markets. The purpose of these shots is to illustrate a variety of profit
situations that can be considered.

In the screen shot above, the arrow represents the bar on which the trade was taken. The
black horizontal line represents the current low of the day. Notice how many new lows were
made before the ABL internal conditions decided it was time to go long. From the entry, the
price moved up about 7 ticks before a pullback. If I am not mistaken, the price eventually went
to about 47.47 before the market closed. Now, how many traders would be able to stay in for

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that long? Not many. The price never really threatened to be stopped out, although there were
pullbacks along the way. For the skittish trader, I would suggest either taking a few ticks and
waiting for the next set up, or use a trailing stop. Not all trades move like this and since no one
has a crystal ball, the best bet is to take a reasonable profit and move on.

The above chart is similar to the previous. The bar closed at 47.17, which was the entry and the
price moved above 47.35. As mentioned previously, unless you are very familiar with determining
targets, your best bet is to take your reasonable profit. Again, there were continued lows until
the ABL decided it was time to enter. Also, dont ever feel that you left money on the table if
you are not part of the complete move. You want to build confidence and reduce the emotion, so
take a set profit or use a trail stop and dont think about what could have been. I had one trader
ask me a while back just how much slippage there is with this method. Firstly, the slippage
is minimal, if at all. Slippage is not a method issue, it is a market issue. Lets look at one more
chart.

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The chart above shows two entries, with nice profit potential on both. One item to note is that
if you are in an ABL trade, you will not be re entered into another ABL trade until the previous
ABL trade is completed. So, if you entered on the first arrow, and you were still in the trade
when the second entry (blue arrow) appeared, you would not be entered again. If you entered
on the first arrow, took your profit, then you would have a second entry on the next arrow.
Notice the continuous lows that were made before the ABL determined it was time for a long.

Of course, the EminiScalp ABL works just as well for shorts, as well as on a variety of other
markets. Please understand that you will have the occasional stop. But, they can be minimized
by proper and sensible trade management. Although the EminiScalp ABL formula is a bit more
complex than our hypothetical example, it doesnt mean the working with hypothetical methods
such as the TL has no merit. The value is in the simplicity as it encourages a trader to view price
in specific areas rather than have a trader look for entries all over the chart. This helps with the
confidence, focus and discipline.

If, after all of your work, you are still having difficulty with the entries, whether it be emotional
or otherwise, then an auto trade method, such as the EminiScalp ABL may be what is needed.
The only consideration that may have to be addressed is the trade management, which is much
easier than determining entry points.

As I mentioned previously, there are trade opportunities all over the chart, at the extremes as
well as in between. The in between trades require a knowledge of critical areas. If you dont
have this knowledge, it does not mean that you cant profit, because you certainly can. It may
require that you look at trading areas where price is consistently drawn to. Then, look at what
price does at these areas. Start formulating a plan that allows the opportunity for you to take
advantage of what price does. This is not an overnight process. It will take screen time. Being
able to focus on something specific is a great starting point.

If you decide to play around with our hypothetical Trade Line method, keep an eye on the highs
and lows, and see what happens when price reaches them. Once the price reaches one of these
extremes, think EminiScalp ABL, and visualize the arrow popping up and you being entered
into the trade. Watch what price does and then visualize where your profit would be. When you
feel it is time to join the EminiScalp ABL community, contact me. We will be happy to bring you
aboard.

No matter what method you trade, whether it is one you have created or if it is one you
purchased, stay with it and give it a chance. Just try to reduce the clutter, be reasonable with
profit targets, and stay with the plan. It is always uplifting when you hear the NinjaTrader lady
say;
TARGET FILLED.
Email me at info@eminiscalp.com for more information

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A Major Price and Sentiment Cycle
Alignment in Gold and Silver
by Lars von Thienen, www.whentotrade.com

Back in 1949, investing legend Benjamin Graham eloquently characterized the cyclical nature of
financial markets in his book The Intelligent Investor:

The market is a pendulum that forever swings between unsustainable optimism and unjustified
pessimism.

Today, the emerging field of social media sentiment datasets supports Grahams point of view,
providing a strong empirical foundation for the overreaction bias that is often the driving factor
in cyclical markets. In recent years, social media has become ubiquitous and important for social
networking and online communication among market participants for stock market news.

According to many behavioral economics studies, mood can profoundly affect individual
behavior and decision-making. Mood predisposes people toward certain decision-making
processes, and crowd mood can cause events and trends to occur. The ability to find and
quantify the underlying mood trends can enable the informed trader the probability of trade
direction in advance of news events. Positive or negative underlying crowd mood can trigger the
buying, or selling of stocks.

Public sentiment ebbs and flows over time as a function of the general publics disposition and
can be analyzed and quantified as a result. The challenge and objective for this study is to
analyze sentiment and price data for purposes of discovering underlying cycles, in order to make
forecasts and predictions based on historical and current data. The successful analysis of said
data can arm the sophisticated trader with foresight into the progression and turns of the overall
sentiment / mood cycle, and market turns as a result.

Normally, social mood waxes and wanes positively and negatively in the form of dynamic cycles.
Social mood refers to a feeling, emotion or attitude about something, and, of course, it can have
a range of values. Whenever mood is related to corporations or the economy, the character of
events will unfold in the related financial assets.

Sentiment information can be a very useful tool for trading professionals. Historically,
professional traders would listen to the activity on the market floor through a series of
microphones and desktop speakers known as Squawk-Boxes to feel the mood, and anticipate
turns in the markets direction based upon the tone and activity level on the trading floors.
However, due to the advent of electronic and computer trading methodologies, the market floors
have largely moved from people shouting at each other on the market floor, to datacenters with
automated trading strategies and execution platforms. This has rendered the trading desks

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unable to listen to the mood of the market, thereby eliminating a crucial piece of data from
trading desks worldwide.

At the same time as the markets were moving from human-based to electronic-based trading
activity, social media and internet chatrooms have been undergoing rapid growth. The financial
market conversations which used to happen on the trading floors, are now happening online,
thanks to websites like Twitter, StockTwits and private chatrooms.

Consequently, the team at PsychSignal created a way to mine the data sets from these online
providers, in order to restore the lost connection between the trading floor, markets and traders.
They call their product the Next-Generation robotic Squawk-Box, or SquawkrBOT for short.
The product acts in the same way that Squawk-Boxes used to connect trading pits to trading
floors, but brings the concept to the 21st century by connecting social media datacenters and
trading datacenters to trading floors by complex datamining and language processing algorithms
instead of microphones and speakers.

The PsychSignal SquawkrBOT operates by using a natural language processing engine employing
a linguistic approach, in order to mine raw social mood information related to financial assets.
It does this to learn how the financial trading public feels about specific securities. In this
study, we combine that data, mined from a combination of StockTwits and Twitter data with the
WhenToTrade cyclical pricing analysis tools, in order to decipher and track the dominant cycles
for both live and historical price and sentiment data, going back to 2011. With the pair of tools
working in tandem, we have created the ability to predict and forecast financial market turns in
advance as a result of historical cycle analysis.

The study used sentiment and price cycle discovery algorithms to investigate the current
market conditions, in context to historic data. The objective was to investigate how social media
sentiment can be used to predict financial cycles. In particular, the studys intent was to analyze
how social chatter, pre-processed from PsychSignal, can be used to forecast market turns in Gold
& Silver.

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Chart 1: PsychSignal live website dashboard screenshot with
WhenToTrade Cycle algorithms shown

The WhenToTrade cycle algorithms were applied in order to discover the underlying sentiment
and price data cycles, and generate forward-looking cycle predictions based upon those historic
cycle results. The detected cycles are presented as a dominant price cycle (brown line) and
sentiment cycle (yellow line). (See Chart 1)

The algorithms have detected an alignment between both sentiment and price cycles bottoming
out on Aug 27, 2015 with an upward projection through September and October, reaching a
peak by the end of November, which then reverses direction towards the end of the year.
In theory, as with all sentiment vehicles, the scores work as contra-indicators. Thus, extreme
points of bullishness should correspond to market tops, and extreme bearish composite scores
should correspond to market bottoms. This is what we called the hot-spots of maximum
financial risk or opportunity. The sentiment cycles for Gold (and also Silver, please review
the website with all charts) now shows the hot-spot we like to detect of maximum financial
opportunity. We would expect the sentiment to turn during the first half of September and this
should also be reflected in the price of the metals following the sentiment.

Situations like these, where both cycles are in alignment, coupled with our internal alerting
threshold levels can pinpoint important market situations.

However, never trade just a forecast on sentiment alone. You need some more confirmations
before you put money on the line. Therefore, it is important to also analyze the cycles on the
price of the metals. If we can detect an alignment of price an sentiment cycles, we have a valid
signal to enter real trades. This is the classic cycles-within-cycles alignment between price and
sentiment. The following two charts show a more detailed dominant cycle analysis on the price
chart for Gold to confirm the detected sentiment cycle alignment. (See Chart 2)

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Chart 2: Price cycle analysis confirmed the bottom for Gold on daily and weekly charts.
The daily chart on the left side shows a detected cycle length of 160 days in the lower panel,
which is exactly in sync with the bottoms and tops of the futures price. These charts have
been created on Aug. 28th 2015 and have been made public at the time of the analysis on the
whentotrade website and news section. Saied this, it shows that it is a valid real market example
on how to apply cycle analysis on sentiment to decipher important market cycles.

Another dominant cycle on the weekly chart is also in alignment with the projected cycle low in
the futures.

So we have an alignment of the sentiment cycle with the current price cycles on daily and
weekly timeframe. On top of that, the price cycles are in alignment with the sentiment swings
shown in the beginning of the article.

This is similar to a situation when the music of an orchestra is in tune and vibrates with the
crowd. You know, now it is time to dance. Your feets will click with the beat automatically. In
the financial environment, now the traders finger vibrates with the keyboard to place a trade.
Financial sentiment cycles are like good music you can hear if they are in tune or out of tune.
PsychSignal and WhenToTrade have invented a platform to show if the sound is in or out of
tune.

According to the cycle alignment, the forecast is indicating that a bull cycle for the gold sector
is positioned to start in the beginning of September, 2015. Such cycle alignment on sentiment,
price, daily and weekly charts happening at the same time is usually indicative of a strong signal
with high probability of realization. According to the study, the current cycle position situation
indicates that $GLD is currently at a bear-market bottom, and is likely to see upward price and
sentiment pressure into the November period.

As we deal and follow a real dynamic behavior of cycles, the situation is subject to change
and needs to be updated and reviewed daily. This forecast and the related charts have been
published live in the public forum in our WhenToTrade magazine on August 29th just some days
before the bottom happened in gold. The charts and forecast can be reviewed at the following
link: https://www.whentotrade.com/?p=7624

This article underpins the importance of cyclic research in social sentiment data sets in order to
forecast important market turns. Thus, the combination of state-of-the-art sentiment data from
PsychSignal with the latest cycle analysis and prediction tools from WTT delivers a truly unique
view on financial markets.

Lars von Thienen


www.whentotrade.com
www.psychsignal.com

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Putting the Cycles Back into the Market
By David Hurst

Hurst Cycles
For many years I have been using Hurst Cycles to analyze and trade
financial markets, from forex to futures and everything in between. JM Hurst
was an American engineer who published two seminal works in the 1970s:
a book titled The Profit Magic of Stock Transaction Timing, and a workshop
course, the Hurst Cyclitec Cycles Course.
In his work he lays the foundation for a theory which describes how the
prices of financial markets are moved by cycles. His work earned him the
reputation of being the father of modern cycle analysis, and his cyclic
principles have stood the test of time: the cycles that Hurst identified in the 1970s are still
beating with the same rhythm today.
In essence Hursts cyclic principles explain how multiple cycles influence price to move
up and down. These cycles are not fixed. The wavelength and amplitude of each cycle varies
constantly (Hursts Principle of Variation), although the relationships between the collection of
cycles which make up the cyclic model are constant.
Using an analysis process described in Hursts Cycles Course we are able to determine
the current phasing of each of the cycles, as well as determine their recent wavelength and
amplitude.
The result of the analysis is then proudly presented on a chart such as this one of the
EURUSD forex pair:

forex pair:

Figure 1: A Hurst Cycles analysis of the EURUSD, presented with Hursts diamonds.

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Reading a Hurst Cycle Chart
Those diamonds at the foot of the chart show where the troughs of each cycle formed in
price (there is a subtle distinction between the trough of the actual cycle, and the trough which
manifests in price because of that cycle). The recent wavelength of each cycle is presented
at the right hand edge of the chart, and the next expected troughs are shown graphically
by means of the circles-and-whiskers: the circles represent the exact time each cycle is
expected to form a trough; and the lines to each side of the circle represent a reasonable
range of time for the trough (bear in mind that cycle wavelengths are constantly varying).
Cycles have synchronized troughs (Hursts Principle of Synchronicity), which means that
the troughs of different cycles occur simultaneously (when their phasing allows, not all troughs
of all cycles can occur simultaneously because the cycles have different wavelengths). Because
of this the circle-and-whisker markers of future expected trough positions tend to cluster
together and form what Hurst called nests-of-lows. Nests-of-lows show as triangles at the foot
of the chart. In figure 1 you can see a nest-of-lows for the 40-week cycle centered around the
end of November 2015. That indicates that we expect the 40-week cycle to form a trough in
price at that time.
To an experienced Hurst analyst that chart presents a wealth of information which can be
readily discerned at a glance. For years I have been presenting such charts, and waxing lyrical
about the accuracy (or not) of the analysis, and what this meant we could expect, because
there is a wonderful underlying axiom to cyclic analysis:

Because cycles are (by definition) the expression of a regularly repeating behavior,
we expect them to repeat what they have done before (with some variation)

At first glance that might not seem very wonderful, but the point is this: because cycles
repeat, if we are able to identify what they did in the past, we have the basis for making
projections into the future.
And so the true benefit of a Hurst cycles analysis is not to simply identify what various
cycles have been doing in the past, but to use that information to help us understand what is
going to happen in the future.
An experienced Hurst analyst is able to look at the chart above and form an idea of what to
expect as we move into the future. But that is a fairly arcane skill, and there is a complex art
to it because we know that cycles constantly vary.

Time for an update


I have spent many, many hours over the past years drawing wobbly lines onto charts to
explain what I see as the expected future path of the market.
I came to the realization that not everyone saw what I was seeing on the charts. The
presentation of the results of the analysis by means of Hursts diamonds and the circle-and-
whiskers is a 40-year old graphic method, and it is probably time that we update it.
And so I set about finding a better way of presenting the wealth of information that the
analysis provides.

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Meet the Composite Model
The analysis process is one of extracting the cycle information from the price data. What
if we took all of that cycle information (the wavelengths, amplitudes and phasing) and put it
back together again? Perform the reverse of the analysis process, and put the cycles back into
the market.
The result is something I call the Composite Model.
There are two benefits to be derived from the Composite Model:
- We can compare the output of the composite model (the Composite Model Line or CML) with
price, and determine how good our analysis is. The closer the CML is to actual price the more
accurately our cyclic analysis represents the price action.
- We can extend the CML into the future, and see at a glance what the analysis is telling us is
expected to happen.

Here is the CML on the same chart of the EURUSD forex pair:

Figure 2: The Composite Model Line superimposed over price of the EURUSD.

Accuracy of the analysis


The first use of the CML is to determine the accuracy of the analysis. We can see in the
chart above that the result of our cyclic analysis is a model that matches price action fairly
well. There are some discrepancies, where price moved at odds to the composite model, but
that is not unusual or unexpected. Cycles do not make up all of the price action, and other
influences on price action (random influences, market manipulation, fundamental news events
and so forth) will inevitably exert themselves and cause some variation.

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Projecting into the future
The most exciting use of the CML is undoubtedly the projection into the future. It is also
possibly the most dangerous and potentially misleading aspect of the composite model.

Figure 3: The CML indicates that we should not expect a big move down.
First the positive: the chart above shows that price is expected to move down into a trough
of the 40-week cycle in November (the nest-of-lows mentioned earlier), but it is not expected
to be a very strong move down. The CML achieves something that it is very hard for a human
analyst to get right combining the effect of all the cycles.
But why do I describe the projection as dangerous? Perhaps it is just me, but when I see
a line on a chart I have a tendency to attach significance to it. There is something about a
line on a chart that is very black and white, no room for uncertainty. And when it comes to
projecting cycles into the future, uncertainty is very much a part of the process.
Our cycle model is a dynamic model which gives us an indication of what we should expect.
This indication is based upon one very important presumption: that the cycles will continue to
beat with the same rhythm.
But we also know that the cycles will change (Hursts Principle of Variation), and so we are
ironically aware that our projection into the future is inevitably flawed.
And so the best we can do is work with the information that we have, and bear in mind
that it provides an inherently flawed projection. This brings to mind one of the SEC required
disclaimers about the trading of financial markets, which states that past performance is
no guarantee of future profits. This has always struck me as a worrying disclaimer, because
surely we make all of our decisions on the basis of past information? And when considering a
trade, we rely heavily upon the past performance of the trading process we are using.
As a cycle analyst and trader it is a particularly ironic disclaimer. The concept that what
has happened before will happen again is at the core of everything we do and every trade we

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make.

The Cycle Traders paradox


Despite this, the Composite Model and its Line provide us with extremely valuable information
on the basis of which to make trading decisions. Take this longer-term chart of the EURUSD
forex pair:

Figure 4: A longer term projection for the EURUSD.


The CML indicates we should expect the EURUSD to rise to a peak in late August 2016,
and then short trades will be the order of the day for a year after that. But it is important to
realize that over the next two years there will be a good deal of opportunity for those cycles to
vary: expand and contract. The further we move into the future, the less likely the projection
is accurate.
And so before you rush off and place your stop orders: bear in mind the cycle traders
paradox:
Any projection into the future is only as good as the analysis it is based upon.
And we will only know how good the analysis is when the future is past!

The above analysis is largely based on the premise that a 4 year cycle formed a trough in
March of this year. If that turns out to be incorrect, we would need to perform a new analysis,
and put those cycles back into the market, and see what they say then.
If you would like to learn more about Hurst Cycles please take a look at our free educational
material: http://0s4.com/r/HRSTTW

David Hickson has been trading financial markets for over 20 years. He created Sentient Trader
(http://sentienttrader.com), a software application which analyzes any financial market using
the exact process presented by Hurst. David is South African and lives in Italy.
www.tradersworld.com Nov/Dec/Jan 2016 109
We dont see things as they are, we
see things as we are. Anas Nin
By Chaig Haugaard

In the world of behavioral science, rate.


researchers have consistently demonstrated I have shared this story with countless
that human beings underperform lab animals farmers over the years as I have worked
in predicting what will come up next in a with them on their grain marketing and am
random sequence. In a study done a number convinced that this research has meaning for
of years ago a team of researchers ran a series commodity speculators as well. While it is
of tests with flashing lights. The lights flashed a humbling experience to get smoked by a
in a random fashion but the green light flashed bunch of rats it is also instructive that the rats
80% of the time while the red light flashed rapidly picked up on a fairly straightforward
20% of the time. Knowing that one could pattern while we, the humans, over thought
easily see that the best strategy would be to the situation and experienced a diminished
always guess green and you would achieve result as a consequence of our brilliance.
an 80% accuracy rating on this test. In fact, When it comes to the world of speculating in
when the test was conducted on lab animals the grain markets I believe that this research
the results achieved were almost exactly 80%. has some very direct applications. In the
In this particular experiment rats, pigeons and world of the grain there tends to be patterns
humans were utilized as test subjects. If the that play out year after year. We typically see
rats and pigeons could correctly predict which higher prices in the too months. You know,
color was going to come up in this random the months when it is too wet, too dry, too
sequence they were rewarded with a bit of cold, planted acres are too unknown. In other
food. Once the experiment began it didnt take words we tend to see higher prices when there
the rats and pigeons long to figure out that if is a great deal of uncertainty in the market.
they just went with green on every guess they This falls in the spring of the year when we
would be successful the vast majority of the dont know how many acres are going to get
time. Human test subjects, however, were planted, if the crop will experience production
not as skilled in selecting the correct color. challenges because the spring is too cool, too
In fact, even after being told that this was a wet or too dry. As the crop year moves along
random sequence the actions of the human and these questions are answered we reduce
test subjects indicated that they thought they uncertainty in the market and as a result tend
were smart enough to unlock this mystery and to also reduce the risk premium that is built
accurately predict the upcoming event. The into the market to account for the uncertainty.
net result is that at the end of the day the lab Perhaps no commodity typifies this pattern
animals were 80% correct in predicting the more than corn. To demonstrate this pattern
proper color in the sequence while the human the following graph shows the closing price of
test subjects checked in with a 68% success the December corn futures on May 1st of the

www.tradersworld.com Nov/Dec/Jan 2016 110


crop year and then again on October 1st. In early May we still dont have an accurate count
of the number of acres that have been planted and many of the crucial weather questions
are yet to be answered. In mid-October those earlier questions have all been answered, the
combines are rolling and the new crop corn is hitting the marketplace. As you can see on
the following graph, most years the concerns that cause the risk premium to be built into
the price structure in the spring have been shown to be unfounded and prices are trading
lower. In years in which actual production problems have occurred the market has also acted
accordingly and is trading higher.

Year May 1st Oct. 1st Change


2000 $ 2.62 $ 1.99 $ 0.63
2001 $ 2.27 $ 2.11 $ 0.16
2002 $ 2.20 $ 2.57 $ (0.37)
2003 $ 2.33 $ 2.20 $ 0.13
2004 $ 3.20 $ 2.06 $ 1.14
2005 $ 2.27 $ 2.09 $ 0.18
2006 $ 2.72 $ 2.64 $ 0.08
2007 $ 3.78 $ 3.69 $ 0.09
2008 $ 6.31 $ 4.84 $ 1.47
2009 $ 4.33 $ 3.41 $ 0.92
2010 $ 3.90 $ 4.66 $ (0.76)
2011 $ 6.61 $ 5.93 $ 0.68
2012 $ 5.39 $ 7.57 $ (2.18)
2013 $ 5.51 $ 4.39 $ 1.12
2014 $ 5.00 $ 3.21 $ 1.79
2015 $ 3.80 $ 3.89 $ (0.09)

Starting with the year 2000 we have seen the December corn futures trade lower on October 1st than
they were on May 1st an amazing 75% of the time and on average they have been $0.31/bu lower on
October 1st than they were on May 1st. One cant help but look at that pattern, reflect on the afore mentioned
lab animals versus human test subject results and conclude that perhaps there is a pattern here that we
need to take advantage of. In other words, instead of over thinking this situation maybe we would be better
off to just pick green.
While the evidence is compelling that a seasonal pattern exists for corn one would be ill advised to
blindly sell December corn futures on May 1st and then buy them back on October 1st. Rather, what has
been proven effective is to use technical indicators to target an optimum time to enter this trade. For the
sake of this article we will assume that the best selling opportunities for corn come in the March through
July time period. In this time period we will answer the concerns over number of acres planted, planting
conditions and weather challenges. It is on this time period we will focus in making our trades based on the
combination of seasonal patterns and technical analysis.
To illustrate how this works in practice lets look at the December 2015 corn chart. The first thing that
you will notice is that within the time frame that we designated as the time we wanted to short this market
we had some good opportunities to sell at much better levels than where the market is currently trading.
This was also a classic year from the standpoint that the uncertainty of the too months reared its ugly head
and presented the opportunity we were looking for. In this case, the eastern Corn Belt was too wet and

www.tradersworld.com Nov/Dec/Jan 2016 111


that resulted in the fear of a reduced crop which sent the market flying higher and presented us with this
opportunity.

Using a combination of technical tools to tell us when to enter this seasonal trade has been an effective
approach. As illustrated on the preceding chart I go with a ten day moving average, stochastics and the
MACD. Sales are made when all three indicators are giving a sell signal and we are in the time frame that
has been identified as an optimal seasonal period in which to be selling. The work has been done and it is
time to pull the trigger.
To exit the positions I use the same set of indicators and exit the position when they tell me to. Although
it may seem simplistic, for me the key to success has been to become more like a rat in search of an easy
meal and less of an over analytical human being.

craig_haugaard@hotmail.com

www.tradersworld.com Nov/Dec/Jan 2016 112


The Ideal Moving
Averages for Swing
Trading
By Clif Droke

In my search for the ideal moving averages (MA) which most closely reflects the main
market trend, many years ago I uncovered by process of elimination the two MAs which
captured most of the important immediate-term moves in the S&P 500 Index (SPX).
The combo in question is the 5-day and 15-day simple moving average series. Since I
define the immediate-term as 1-3 weeks in duration, it makes sense that the 5-day MA
corresponds to exactly one trading week while the 15-day MA is equivalent to three weeks.
Thus the entire immediate-term time frame is captured in these two simple moving averages.
Whats more, when dealing with moving averages were not just looking at simple trend
lines which answer to the number of days in the moving average itself. For instance, a 5-day
moving average isnt merely the equivalent of a 5-day market trend. Moving averages are
by definition a lagging indicator, but they also represent half-cycles. A 5-day moving average
is capturing not only a 2-week cycle in the stock or market index were following, but it also
reflects a 6-week cycle. Viewed from this perspective, the 5-day/15-day MA combo can be
said to capture the spectrum of cycles from one week to six weeks.
In most cases swing traders should be focused solely on the 15-day moving average to
the exclusion of the 5-day moving average in our stock market overview. The guidelines of
this trading discipline tell us to wait for a 2-day higher close above the 15-day MA (which we
recognize as the dominant immediate-term trend line) before considering purchasing a stock
or ETF. (Other technical factors must be in place before entering a trade aside from a 2-day
higher close above the 15-day MA, but for the purpose of this discussion well ignore them). In
perhaps most instances the 5-day MA can be safely ignored since its not of primary concern
to the dominant market trend.
Following is a recent chart example of the 15-day MA buy signal. After the broad market
decline in August 2015, the Russell 1000 Growth Index (RLG) confirmed an immediate-term
bottom in September by closing two days higher above its 15-day moving average. After this
RLG re-tested the August low but confirmed it by closing above it. From there the RLG rallied
in October and ended up completely recovering its losses from the August selling panic.

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Of course other factors were also at work in laying the groundwork for the October 2015
recovery. Most notably these factors included a diminution of new NYSE 52-week lows, which
allowed the stock markets internal momentum profile to significantly improve. Also, the
NYSE advance-decline (A-D) line led the major indices in rising above its August high. After a
major stock market bottom, its imperative that the A-D line show leadership over the major
averages. This serves as another strong technical indication that a recovery is imminent.
Back to the moving averages. The time to pay attention to the 5-day MA is at both ends
of a major move, viz., after the market has had a major decline and also after a major rally.
Normally, whenever the SPX closes below its 5-day moving average after being in an uptrend
it means the underlying 15-day MA is about to be tested. A break below the 5-day MA doesnt
necessarily mean the markets uptrend is going to be reversed, but it does mean in most cases
the immediate-term trend will be tested and perhaps temporarily halted. When the stock
market as represented by the S&P 500 (SPX) has established a decisive upward trend backed
by powerful internal momentum (as the SPX has for the last few months), any pullback which
causes the SPX to close under the 5-day moving average tends to reinvigorate the uptrend.
This happened in late December 2011, twice in January, once in February and once in early
March 2012.
What happens when the market goes from its normal state as it was in the first three
months of 2012 to something approaching a frenzied, overbought status? At that time the
market was in the process of transitioning from normal to overbought and soon afterward
provided the answer to that question.

www.tradersworld.com Nov/Dec/Jan 2016 114


Historically, what happens in cases like this is that as the SPX accelerates and becomes
distended from the 15-day moving average (see chart below). Then the 5-day MA temporarily
overtakes the 15-day MA and becomes the dominant trend immediate-term trend line. When
one or more short-term cycles are peaking (as was happening in March 2012), the 5-day MA
can act as a powerful motivator for the SPX and create a blow-off type move. This happened
true to form in late March 12 (see the following chart exhibit).

After a major market low has been established, its important to watch the 5-day moving
average in conjunction with the 15-day MA. After a panic decline, such as the one that
happened in August 2015, watch for the first 2-day close above the 5-day MA. Unlike the
15-day MA, the 2-day close above the 5-day MA doesnt have to be a higher close. In other
words, as long as price closes two days in succession above the 5-day moving average thats
all that matters.
The following chart example shows the Dow Jones Industrial Average (DJIA) in relation to its
5-day and 15-day MAs during the July-October 2015 period. Notice that almost immediately
after the late August sell-off, the Dow closed two days in succession above the 5-day MA to
confirm a preliminary bottom. Not long after this, the Dow confirmed the immediate-term
bottom by closing two days higher above its 15-day MA.

www.tradersworld.com Nov/Dec/Jan 2016 115


A final consideration when using both moving averages is to watch for the 5-day MA to
cross above the 15-day MA after the market low is in. In the above case, the Dows 5-day MA
crossed above the 15-day MA around the middle of September. This gave additional weight
to the immediate-term bottom signal that was confirmed shortly thereafter. Anytime the
5-day MA crosses above the 15-day MA especially if the market is technically oversold a
brief but sharp rally is likely to follow. This was the case in October 2015 after the 5-day MA
crossed once again above the 15-day MA early that month.

Clif Droke is a recognized authority on moving averages, internal momentum and Kress
Cycles, three valuable tools as applied to the equity market. He is the editor of the Momentum
Strategies Report newsletter, published three times a week since 1997. He has also authored
several books on trading and technical analysis, including his most recent one, Mastering
Moving Averages. For more information visitwww.clifdroke.com

www.tradersworld.com Nov/Dec/Jan 2016 116


My Story and the Truth About Time
PART 1
A TRUE STORY
By David Franklin

My success story is not unique. I am not the first individual to find a way to know the direction
of stocks or the stock market. A great many have come before me. Here are a few of their
names:
Jessie Livermore, W. D. Gann, E. H. Harriman, Augustus D. Julliard, Richard Ney, Bernard
Baruch, Joseph P. Kennedy, Jim Simons, and Steven A. Cohen.
As I have, each of these men found their own individual way to know the direction of stocks or
the market.

I have found a mathematical way to know why and when certain stocks are at a Top or a
Bottom. August 2014

David Franklin, Independent Market Researcher,


Author of A SINE of the TIME & Creator of
THE TIME SINE WAVE ANALYSIS

But that is impossible, right? It is impossible to know when a stock is at a Top or Bottom! If
you are thinking this same thought, history says you are in the company of nearly all stock &
market analysts.

The honest truth all professionals, true professionals know that its not possible. You may
believe that it is but very few pros even care about direction anymore. Its all strategy now.
Directional picks are a dead business .
Tom Sosnoff, founder of Thinkorswim and Tastytrade.com., December 30, 2014

However, recorded history also speaks to the fact that those who issue statements of
impossibility are often proven wrong in the future.

For example, remember when high speed trains, rockets leaving the Earths atmosphere,
heavier-than-air flying machines, horseless carriages, moving pictures, lightbulbs and wireless
communications were said to be impossible?

If it is impossible to know in real time, when a stock is at a top or bottom, then such a feat
cannot be performed at all, not even once, let alone multiple times in a row.
Then how can these Real Time BUY and SELL signals be explained?

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www.tradersworld.com Nov/Dec/Jan 2016 118
The author has dozens of charts with Real Time Sell and Buy signals generated by his TIME SINE
WAVE ANALYSIS, and can easily fill the next twenty pages or more with them. Additional Real
Time examples are to be found in my latest book: A SINE of the TIME, available from Mr. Larry
Jacobs, Publisher of Traders World Magazine.

However, I imagine at this time the reader is thinking something like:

Yeah, anyone can put stock price charts here and claim to have known these indicated sell and
buy signals in Real Time. Right?

EXCEPT for this researcher. You see, I deliberately removed the Time Sine Wave Analysis
charts that are located directly beneath these price charts. AND, it is those unique, proprietary
Real Time Charts that constitute the mathematical proof of the statement I made at the
beginning of this article:

I have found a mathematical way to know why and when certain stocks are at a Top
or a Bottom. August 2014

PLUS, I have the Real Time data, minute by minute, generated for these stocks to prove beyond
www.tradersworld.com Nov/Dec/Jan 2016 119
a shadow of a doubt the truth of my opening statement.

THE IMPOSSIBLE QUEST of 30 YEARS

The impossible dream sought by the author was not accomplished overnight.

The following has been my personal quest for the past thirty plus years:

To determine whether the science of mathematics, combined with the science


of physics and its Laws of Motion, could be utilized to come to a mathematical
explanation for top and bottom prices in stocks and the market in Real Time.

If successful such a scientific method could render archaic and obsolete, such technical analysis
tools as oscillators, moving averages, bands, P/E ratios, volume, volatility, stochastics, etc., as
well as reduce or eliminate the use of complex trading straddles and strategies.

The results have proven the answer to be an unqualified Yes.

TWO NATURAL LAWS


as CAUSE for Stock price movements

No. 1

THE TIME LAW

Time must run down, not up!

No. 2
THE LAW of TIME MOTION
All Time motion begins at an Equilibrium, seeks a point of rest, and returns to a Time
Equilibrium from when it began.

TIME, PHYSICS and THE LAWS of MOTION


At this time the author highly recommends readers familiarize themselves with the physical
laws of motion as formulated by classical physics. Please view the three videos and read to
comprehension, the ideas presented at:
https://en.wikipedia.org/wiki/Newton%27s_laws_of_motion#Newton.27s_first_law

TIME AND THE LAWS OF MOTION

Of the Three Laws of Motion cited above, the author has proven Dr. Russells Law of Motion to be
the correct one for Market Time calculations. Rephrased in terms of mathematical Time, it says

www.tradersworld.com Nov/Dec/Jan 2016 120


the following:
All Time motion begins at a 1:1 Equilibrium, seeks a point of Rest, and returns to the
Equilibrium where it began.

A Definition of Equilibrium:
A state in which opposing forces or influences are balanced.

Here are examples of beginning numerical equilibriums of Time:

15 to 15,10:10, 13:13, 7:7, and so forth.

Further, in order to get the correct mathematical ending for Time, there must be the correct
mathematical beginning. This means that where mathematical Time begins, it must begin at a
1:1 Equilibrium. This fact is in perfect harmony with classical physics, which says:

Every action (motion, force, vector etc.,) in one direction is opposed by an equal action in the
opposite direction.

WHERE TIME VALUE IS FOUND and USED

Market Time Value is observed to be present in stock options. The professional and amateur
market enthusiast understands the following fact: Call options with strikes beneath the stock
price, and Put options with strikes above the stock price contain two values: Time and Distance
(intrinsic).

In the interest of brevity, the author states the following fact based on decades of research via
trial and error:

After applying the Laws of Time and Time Motion individually to these two unique values over
many years of testing, only one was proven to meet the scientific standard of REPEATABILITY
and RELIABILITY: TIME Value.

The following graphic is a representative example of where the author finds Stock Time value
used in his calculations. By answering the question that follows, the reader will understand the
basic method for calculating starting Equilibrium Time Values:

www.tradersworld.com Nov/Dec/Jan 2016 121


In the example above, you found there to be 5 points of CALL Time in the CALL, and 5 points
of PUT Time in the PUT. By charting the above Equilibrium Time values forward in time, the
reader will come to understand:
A. How the movement of these two Time values affect the movement of XYZ stocks price,
and
B. Fore tell stock price direction per The Law of Time Motion and The Time Law.

DETERMINING PRICE DIRECTION with THE LAW of TIME MOTION

Starting at the correct beginning for an individual Time Cycle, here is what Real Time data
reveals:

www.tradersworld.com Nov/Dec/Jan 2016 122


SO WHAT?

Well, there is a very big SO WHAT? about the above Time value facts:

These facts graphed in Real Time inform the author as to when and in which direction
the stock must move!

This is accomplished by beginning CALL and PUT Time value at Constant Equilibrium Time
Values at the true starting point. When graphically displayed together in Real Time, The Time
Law and The Time Law of Motion informs the author when and in which direction the stock
must move!

www.tradersworld.com Nov/Dec/Jan 2016 123


Rephrasing The Time Law of Motion while retaining its mathematical expression, it becomes:

All Time motion begins at a mathematical 1:1 Equilibrium, seeks a point of Rest, and
must go back to a mathematical Equilibrium where it began.

THEREFORE, with CALL and PUT Time value beginning here (5 to 5, 7 to 7, 13


to 13 etc.) and going to:

it must go back to here: :a 1:1 CALL PUT Time Equilibrium value by


Expiration Day, per The Law of Time Motion.

MAJOR TIME TRUTH No. 1

When PUT and Call Time Chart in an expiring Time Cycle chart looks like this:

the author knows the stock price must go down to get CALL and PUT Time to a 1:1 CALL
PUT Time Equilibrium value by Expiration Day, per The Law of Time Motion.

www.tradersworld.com Nov/Dec/Jan 2016 124


Real Time example and proof:

Please note the fact that the July Time Cycle above was expiring in less than 30 days.

MAJOR TIME TRUTH No. 2

When PUT and Call Time Chart in an expiring Time Cycle chart looks like this:

www.tradersworld.com Nov/Dec/Jan 2016 125


the author knows the stock price must go up to arrive at a 1:1 CALL PUT Time Equilibrium
value by Expiration Day, per The Law of Time Motion.

Real Time example and proof:

Please note the fact that the September Time Cycle above was expiring in less than 40 days.
To confirm the Time truths revealed in the two graphic illustrations above please review the
section herein titled:

REAL TIME FACTS about CALL AND PUT TIME

In PART 2 to follow, I will be illustrating and explaining with text and Real Time Charts, the
following:

All stocks with options have only three True Time Cycles.
How these three True Time Cycles interplay with the mathematics of The Time Law and The
Law of Time Motion to cause stock prices to go up and down.

www.tradersworld.com Nov/Dec/Jan 2016 126


Review of The Path
of Least Resistance
by Daniel T. Ferrera
By Larry Jacobs

If you have studied W.D. Gann throughout


his many books, you probably know that it is
quite difficult to understand and often does
not seem to work as anticipated. The problem
is that Gann often gave only vague hints and
superficial details about his deeper tools in his
public courses, leaving his students to figure
out his ideas by themselves.
However, it has been discovered in private
letters to students that Gann sometimes
did provide deeper explanations, and often before disconnected tools into an integrated
required those students to sign a NDA for network of cross-conformational tools. These
him to reveal these points. This combined integrated tools provide insights into trade
with an exhaustive study of the full range setups and generate important signals that
of Ganns work, give the only entry to some would have before been missed without this
of Ganns deepest techniques. Ferreras new added information.
course, begins with such private material, and We recommend this course as presenting
follows Ganns more secretive clues through a new level of insight into little understood
the entire corpus of his work, leading to some frameworks of Gann analysis. It is deep and
quite fascinating conclusions. comprehensive presenting a sort of advanced
Part of this relates to a famous quote of textbook on Gann analysis. Thought advanced,
Ganns that many have wondered about but it begins with first principles, and leads even
never understood: "We use the square of odd a new reader into a deep appreciation of the
and even numbers to get not only the proof subject.
of market movements, but the cause." This The books has 300 pages of explanatory
is one of Ganns most mysterious references, text and 150 charts and diagrams, with
and for the first time, Ferreras new course another 190 pages of rare supplementary
provides some interesting insight into this material.
mystery, showing the workings of some Gann So if you are a serious Gann student, you
tools that have long been obscure. might consider investing in Ferreras new
The value of these insights is that book, The Path of Least Resistance. It will
they lead to a deeper access into Ganns surely be a good investment.
knowledge, interconnecting what were

www.tradersworld.com Nov/Dec/Jan 2016 127


Review - Building
Winning Algorithmic
Trading Systems by
Kevin J. Davey

Larry Jacobs

Do you want to build your own trading


system with useful guidance and with
professional advice?
Then you might want to take a look at
Kevin Daveys new book, Building Winning It worked for Kevin as he got triple
Algorithmic Trading Systems. digit returns in the World Cup Trading
Kevin shares his methods of developing Championship and it just might work for
trading systems. His systems have generated you too. You can develop an idea using Kevins
big returns for him. He explains how to do algorithmic approach using current trading
it and demonstrates it through an explicit software like TradeStation or NinjaTrader.
step-by-step process of getting an idea and The market is constantly changing and
then confirming the idea. He teaches you how system results do also change. By developing
to setup your entry and exit points. He also your own trading system it can be tweaked
goes through testing the systems and the from time to time in an evolving market.
rules. Sometimes he says you might want to Building Algorithmic Trading Systems
abandon the idea completely. might be the perfect book for you to provide
Kevins website is also available and even you with the right guidance and advice.
includes his very own Monte Carlo simulator Kevin Davey is rather unique and he clearly
and many other tools so you can then fully understands systems and the markets. Very
automate and then test your own ideas for few people have this gift.
trading. Not many trading books today are written
When you get a trading system you may by people who actually make their living
have noticed sometimes it stop working in the trading. Kevin is a real trader and has put
long run. Today many traders are opting to go together this information in an easy to read
the way of algorithmic trading systems. These format.
systems actually do account for the bulk of So if you are interested in developing your
the trading volume in the markets. own trading system and want to understand
This book teaches you finally how to what is really involved in system development,
develop your own trading system and how to I would highly recommend this book.
implement it.

www.tradersworld.com Nov/Dec/Jan 2016 128


Why Traders Should Never Deal with
Data Lag Again
By Eddie Z

A few weeks back Jim, a newer client, called knowing a few simple tips and tricks to solve
in panicked. He was super frustrated that he computer issues as they come at us. Because
had just upgraded his trading computer to a they will. We cant circumvent that as much
new model and now had a horrible case of as we would like to.
data lag. He wasnt able to trade at all at
this point. He was upset. Wouldnt you be? If you ever come up against a data lag
If youve been in a situation like this before, issue yourself, here is what you need to know:
you know what this does to a perfectly good
day takes it down a notch or two. Traders 1. Whats The Most Common Causes
shouldnt have to deal with data lag. In fact, Of Data Lag?
Im on a mission to call data lag extinct. Really,
Underpowered Processors
it shouldnt happen.
If you have an EZ Trading Computer, I
Jim and I walked through some steps to
assure you all of our machines can process
troubleshooting his issue. Jim look, I dont
real time data. However, lots of traders have
want to overlook anything in solving this
older machines. This might be the source of
quickly for you. Hows your internet speed? I
your issue. Computer hardware has a shelf life
asked him. He assured me his connection was
of five years before it becomes so outdated
high speed. Do me a favor, lets test it really
that it is unable to keep up with advances
quick to we can mark it off our list of possible
in software and data speeds especially for
sources. Much to his surprise, the results
traders. Even computers you could go buy
were not good. In fact, his speeds were yo-
right now off the shelf at your local store, with
yoing up and down to the point that every few
i3 or i5 processors, arent going to get the job
minutes he pretty much had no connection at
done for you.
all. He was surprised. I just assumed because
my computer was working one minute and
Internet Speed
not the next that something was up with the
We often make the mistake of taking our
hardware, Jim responded.
internet speeds for face value. We check a box
We have all done this. We assume the
with our internet provider saying we want a
problem is a big issue and overlook the small
certain speed, and assume that is what is being
stuff. Granted, sometimes its a bigger issue.
delivered to us at all times. This most often just
This wasnt the case for Jim. He was panicked,
isnt the case. If you live in a neighborhood or
couldnt trade and immediately started
area that has lots of users on your providers
thinking his whole setup was broken. Even a
lines, its likely that your connection might ebb
small kink in the chain can cause issues that
and flow depending on how many other users
cost us time and money.
are logged on. Be persistent with contacting
Thats why there is so much value in
your internet provider if you are experiencing

www.tradersworld.com Nov/Dec/Jan 2016 129


less than ideal internet speeds. Computers, we say that a minimum processor
benchmark score for traders is 7500. I prefer
2. Why You Should Think About a score more towards 10,000 (In fact, all of
Upgrading Your Set Up EZ Trading Computers installed processors
score above 10,000). This allows some extra
Upgrading Your Trading Computer head room for you to grow with the machine
Ideally, your current computer should have over the next few years. I recommend using
a lifespan of 4-5 years. This is the easiest cpubenchmark.net. Punch in the model of
metric for you to use to know if you should your current processor and compare that to
upgrade. If your computer is from 2010-2011, the processor in the computer you would like
you should consider upgrading. The primary to purchase.
reason for this is that older technology cant
compete against newer processors. Newer Testing Your Internet Speeds
software has a much greater demand on your Data lag should be a thing of the past. This
computer then it did 4 years ago. When it comes means that you will have to keep your Internet
to technology, everything evolves together provider in check. You can quickly and easily
processors, complexity of data, software, etc. test your internet speed at speedtest.net. This
Consider this: An Intel processor from 2015 is is the exact tool that I used to help troubleshoot
191% faster than an Intel processor from five my client Jims computer problem.
years ago.
If you experience data lag, you
Get The Fastest Connection should:
Possible
We all want to spend one dollar and get two Always make sure you are getting the
back. The point is you have to spend money to internet speeds you are paying for from your
get access to the return on your investment. provider.
Paying for a high speed internet connection PAY for the highest speed Internet speeds
is one area that you should spend money. available to you.
Dont skimp here and select mid-tier speeds. Never trade on an underpowered computer
In fact, get the highest speeds possible. As its definitely a gamble.
a trader myself, I have never once regretted Run the tests listed above, and if you
paying my monthly internet bill. My internet find out your machine is underpowered
connection is crucial to my ability to trade upgrade. NOW. I guarantee it will be worth
successfully. the investment.
Dont put off installing any security
3. Tests You Should Be Performing upgrades, software upgrades, virus protection,
On Your Computer and maintenance in general. Its super
important.
Testing Your Processor
I cant say enough about benchmarking your Get your Free Guide to Trading Computers
processor. This score allows you to view the Here.
processors performance abilities and compare
this score to other processors. At EZ Trading

www.tradersworld.com Nov/Dec/Jan 2016 130


How To Buy A Trading Computer
Free Guide

Dear Trader, Get the Buyers Guide for Free here


In the free guide, you will learn:
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Most traders dont realize that in order to


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My name is Eddie Z and I have been trading


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Ive come to learn what trading technology


works the best and what doesnt.

Let me warn you ahead of time: there are


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My recommendation is to educate yourself so


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To help you I have created


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Amazon Kindle Books
Gann Masters Course by Larry Jacobs $9.95
As you know, W.D. Gann was a legendary trader. Some say he amassed a
fortune in the the markets. He wrote several important books on trading as
well as a commodity trading course and a stock market trading course. He
charged $3000 to $5000 for the trading courses which included 6 months
of personal instruction by phone. The Gann Masters Trading Course to help
traders become successful.
A Unique Approach to Forecasting by Ivan Sargent $32.95
This book is possibly one of most advanced books in technical analysis you will
read regarding price and time reversals. Knowing the Price and time of a stocks
reversal point is undeniably an important element for to successful trading.
Unlike most trading books which use indicators, oscillators, and basic geometry
to forecast the markets outcome; this technique uses a series of lines which
when accurately placed can deliver reversal points with amazing accuracy.
Trend lines, retracements lines, channels, fan lines, pivot points etc, all inspect a stock chart
from the outside, which is more or less the obvious point of view.

Patterns and Ellipses by Larry Jacobs $9.99


This book concerns itself with a highly technical subject, the subject of
technical analysis of the financial market. This book specifically deals with
ellipses and pattern formations used for trading the markets. It also covers
many other technical analysis tools that can be used effectively by the trader.

Ganns Master Charts Unveiled by Larry Jacobs $9.99


We know that Gann used the Pythagorean Square because he was found
carrying it with him into the trading pit all the time. This square was hidden in
the palm of his hand. How did he use this square? Why did he not discuss the
use of this square in his courses? There is only one page covering the Square
of Nine in all of his books and courses. Was this square his most valuable tool?
These and all the other squares Gann used will be discussed in detail in this
book with many illustns and examples to prove how they work.

Gann Trade Real Time by Larry Jacobs $9.99


When you opened this book you took the one step that will help you learn how
to be successful at the most desirable, but hardest profession in the world. That
profession is real time trading. This book is not going to give you an instant
secret to day trading. It is going to give you the basics so that you might
start the path to understanding how the markets work both short term and
long term. You need to know and fully understand the markets and develop

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successful trading strategies to become successful at this endeavor.

Best Trading Strategies: Master Trading the Futures, Stocks, ETFs,


Forex and Option Markets $3.99

This is one of the most fascinating books that was ever written about trading
because it is written by over thirty expert traders. These traders have many
years of experience and they have learned how to turn technical analysis
into profits in the markets. This is extremely difficult to do and if you have
ever tried to trade the markets with technical analysis you would know what
I mean. These writers have some of the best trading strategies they use and have the
conviction and the discipline to act assertively and pull the buy or sell trigger regardless
of pressures they have against them. They have presented these strategies at the Traders
World Online Expo #14 in video presentations and in this book.

What sets these traders apart from other traders? Many think that beating the markets has
something to do with discovering and using some secret formula. The traders in this book
have the right attitude and many employ a combination of fundamental analysis, technical
analysis principles and formulas in their best trading strategies.

Trading is one of the best ways to make a lot of money in the world if one does it right. One
needs to find successful trading strategies and implement them in their own trading method.
The purpose of this book is to present to you the best trading strategies of these traders so
that you might be able to select those that fit you best and then implement them into your
own trading.

I wish to express my appreciation to all the writers in this book who made the book possible.
They have spent many hours of their time and hard work in writing their section of the book
and the putting together their video presentation for the online expo.

Finding Your Trading Method $3.99


Finding your trading method is the main problem you need to solve if you
want to become a successful trader. You may be asking yourself, can I find
my own trading method that will reflect my own personality toward trading?
For example, do you have the patience to sit in front of a computer and trade
all day? Do you prefer to swing trade from 3-5 days or do you like to hold
positions for weeks and even months? Every trader is different. You need to
find your own trading method.

Finding out your trading method is extremely important to produce a


profitable benchmark that can be replicated in your live account. Perhaps the best way to
find a successful trading method is to listen to many expert traders to understand what

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they have done to be successful. The best way to do that is to listen to the Traders World
Online Expos presentations. This book duplicates what these experts have said in their
presentations, which explains what they have done to find their own trading method.

If you have a trading method that gives you a predictable profit, then that type of objectivity
contributes to your trading edge. The problem with most traders is that being inconsistent
will never allow them to have an edge. After you find your trading method that you feel
comfortable with, you must have the following:

An overall plan to:


1) Set your rule set and plan and then stick with it in all of your trading.
2) To give you a trading plan for every day.

The trade plan then should:


1) Have an exact entry price
2) Have a stop price
3) Have a way to add positions
4) Tell you where to take profits
5) Have a way to protect your profits

By reviewing all the methods given in this book by the expert traders, it will give, you the
preliminary steps that you need to find your footing in finding your own trading method.

Reading this book and by seeing the actual recorded presentations on the Traders World
Online Expo site can act as a reference tool for selecting your method of trading, investment
strategies and tactics.

It took many of these expert traders in this book 15 30 years to finally come up and find
the answers to find their trading method to make consistent profit. Finding your trading
method could be then much easier when you read this book and incorporate the techniques
that best fit your personality and style from these traders. This book will enable you to that
fastest way to do that.

So if you want help to find your own trading method to be successful in the markets then
buy and read this book.

Learn the Secrets of Successful Trading $3.99


Learn specific trading strategies to improve your trading, learn trading ideas and tactics to
be more profitable, better optimize your trading system, find the fatal flaws in your trading,
understand and use Elliott Wave to strengthen your trading, position using correct sizing
to trade more profitable, understand Mercury cycles in trading the S&P, get consistently
profitable trade setups, reduce risk and increase profits using volume, detect and trade

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the hidden market cycles, short term trading by taking the money and
running, develop your mind for trading, overcoming Fear in Trading, trade
with the smart money following volume, understand and use the Ultimate
Oscillator, use high power trading with geometry, get better entries,
understand the three legs to trading, use technical analysis with NinjaTrader
7, use a breakout system with cycles for greater returns with less risk, use
TurnSignal for better entries and exits, trade with an edge, use options
profitably, learn to trade online, map supply and demand on charts, quantify
and execute portfolio rotation for auto trading.

Written by Many Expert Traders

The book was written by a large group of 35 expert traders, with high qualifications, most
of who trade professionally and/or offer trading services and expensive courses to their
clients. Some of them charge thousands of dollars per day for personal trading! These
expert traders give generally 45-minute presentations covering the same topics given in
this book at the Traders World Online Expo #12. By combining their talents in this book,
they introduce a new dimension to finding a profitable trading edge in the market. You can
use ideas and techniques of this group of experts to leverage your ability to find an edge to
successfully trade. Using a group of experts in this manner to insure your trading success is
unprecedented.

Youll never find a book like this anywhere! This unique trading book will help you uncover
the underlying reasons for your lack of consistency in trading and will help you overcome
poor habits that cost you money in trading. It will help you to expose the myths of the
market one by one teaching you the right way to trade and to understand the realities of
risk and to be comfortable with trading with market. The book is priceless!
Parallels to the Traders World Online Expo 12

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Trade the Markets with and Edge $3.99

This is an important book discussing the use of different strategies methods


about trading.

It was written by over 30 expert traders. The book was designed to help you
develop your own trading edge in the markets to put you above others who
dont have an edge and just trade by the seat of their pants. 90% of traders
actually lose in the markets and the main reason is simply that they dont have an edge.

All of the writers in this book are very experienced and knowledgeable of different ways. Each
of them has their own expertise in trading the markets. What sets these traders apart from
other traders? Many think that beating the markets has something to do with discovering and
using some secret formula.

The traders in this book have the right attitude and many employ a combination of fundamental
analysis, technical analysis principles and formulas in their best trading strategies. This gives
them a trading edge over other traders. If you want to be successful at trading, you too must
have your edge. One needs to find successful trading strategies and implement them in their
own trading method.

The purpose of this book is to present to you the best trading strategies of these traders so
that you might be able to select those that fit you best and then implement them into your
own trading style. I wish to express my appreciation to all the writers in this book who made
the book possible. They have spent many hours of their time and hard work in writing their
section of the book and the putting together their video presentation for the online expo.

Guide to Successful Online Trading - Secrets from the Pros $3.99

This is one of the finest trading books youll ever see about trading. The
reason is that it comes from a group of expert pro traders with multiple years
of experience.

Trading as you know is extremely difficult. It is estimated that 90% of


traders lose money in the markets. To help you overcome this statistic, the
pro traders in this book give you their ideas on trading with some of the
best trading methods ever developed through their long time experience.
By reading about these trading methods and implementing them in the markets you will then
have a chance to then join the ranks of the 10% of the successful traders.

The traders in this book have through experience the right attitude and employ a combination
of technical analysis principles and strategies to be successful. You can develop these also.

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Trading is one of the best ways to make money. Apply the trading methods in this book and
treat it as a business. The purpose of this book is to help you be successful in trading.

From this book you will get all the strategies, Indicators and trading methods that you need
to make big profits in the markets.

This book gives you:


1) Audio/Visual Links to presentations from pro traders
2) The best strategies that the professional traders are using now
3) The broad perspective you need in todays difficult markets
4) The Exact tools that you need to make profitable trading decisions
5) The finest trading education

CRAIG TRADING: Craig Haugaard made 300.9% in his World Cup Trading
Championships Account in 2014 - Want to Know How? $3.99 This book
contains an interview that I made with Craig Haugaard, third-place finisher
in the 2014 World Cup Championship of Futures Trading with a 300.9% net
profit. I asked him many questions on exactly how he did it.
In the rest of the book I explain to you how to use the indicators that Craig used
to make his 300.9% return.
Here are the indicators that he used:

Seasonality
MACD
Stochastics
Moving Averages
Trailing Stops
Fibonacci Retracements & Extensions

All of the charts in this book are produced using my favorite charting software Market-Analyst.
I have also arranged for you to get a FREE trial so that you might have the chance to actually
work with these indicators with a real charting platform.
You will also be able to view the video presentations that I personally created so you can
see how these indicators can be setup and followed with clear and concise step-by-step
instructions. After you understand how these indicators work, I would then recommend that
you go to WorldCupAdvisor.com and consider following Craig Haugaards real-time trades.

This one-of-a-kind book teaches you how to identify the direction of the markets and trade
the markets by using popular trading indicators. This is done by concise instructions backed
by learning videos, hands on practice with real trading software and by following real-time
trades of a master trader.

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Mastering Your Trading: Learn from Expert Trading Advisors
Mastering Your Trading is the perfect source for learning various
methods of trading the market from expert advisers. $3.99

This book focuses on various methods of trading developed by many top


trading advisors. There are 17 well written articles and it is packed by insight
that can benefit the beginning to the expert trader. This is a must read. The
trading methods and strategies presented in this book can help to succeed in
todays volatile market environment. From preparing your psychology to the
demands of timing the market and managing the risk, this book tells it all.
The book provides you the tools that are necessary for making the right trades and when to
get in and out of the market. The book covers:

Price and Volume the only True Indicators


Uncovering Market Secrets
How to handle capital exposure
Secrets of Safe Profitable Day Trading
Using Social Media Sentiment Cycles
How to Dramatically Improve Your Trading Psychology
How to Handle Trading Losses
Using a Market Scanner to Save Time
How to Stop Guessing
How to Get the Right Trading Computer
Simple and Practical Trading Tips
And much more

This book is an enhanced Edition which means that the articles are backed with audio visual
presentation links. Most of the presentations are in HD quality and are put together by the
writers of the articles in the book and really help the learning process.

Successful trading is based on knowledge and having the right psychology to trade the markets.
This book will lift your trading to a much higher level and will save you an enormous amount
to time.

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